PENGUMUMAN PERUBAHAN NAMA PERUSAHAAN DAN HARGA SAHAM DI BURSA EFEK INDONESIA

Abstract

This study aims to analyze the effect of changing the company’s name on the stock price returns. As it is known that a company’s name resembles to an identity of an organization and a company’s name also determines people’s perception of a company’s im-age. Therefore, if a company decides to alter its name then there will some risks behind that. The study uses secondary data from the Indonesian Stock Exchange over the periods of 2007 – 2008. The sample of the firms taken is determined by using purposive sampling method. It is stated from the research that the change of a company’s name does not have an effect on stock returns. This is because the discovery shows that there is a tendency of a negative abnormal return signal, i.e., investors are not con-cerned with the change of a company’s name. In addition, the change of a company’s name does not affect on stock returns because of the global financial crisis in mid-2007 until the end of 2008.