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Corporate name change signaling in the services industry

Paul Sergius Koku (Assistant Professor of Marketing, College of Business, Florida Atlantic University, Fort Lauderdale, USA)

Journal of Services Marketing

ISSN: 0887-6045

Article publication date: 1 December 1997

1875

Abstract

Investigates the effectiveness of corporate name change signaling in the services industry. Argues that previous studies on the subject are lacking because they failed to distinguish between the services and manufacturing sectors. Uses the trend analysis method and examines the movement of price‐earning ratios during a five‐year period before and after the name change. Evaluates the effectiveness of the name change signaling strategy by testing the difference in means of the “before and after” P/E ratios. Finds that firms who announce name change together with other managerial decisions and regularly release news on other firm‐specific activities fared much better than firms which did not release such information.

Keywords

Citation

Sergius Koku, P. (1997), "Corporate name change signaling in the services industry", Journal of Services Marketing, Vol. 11 No. 6, pp. 392-408. https://doi.org/10.1108/08876049710187491

Publisher

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MCB UP Ltd

Copyright © 1997, MCB UP Limited

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