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What׳s a name worth? The impact of a likeable stock ticker symbol on firm value

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  • Xing, Xuejing
  • Anderson, Randy I.
  • Hu, Yan

Abstract

We investigate the impact of the likeability and pronounceability of stock ticker symbols on firm value. Using a unique, comprehensive dataset with hand-collected ratings of ticker symbols, we find that higher likeability of ticker symbols leads to higher Tobin׳s Q. The pronounceability of ticker symbols has a similar but weaker effect. Further evidence suggests that the effect is possibly due to the impact of ticker symbols on stock liquidity or mispricing or both.

Suggested Citation

  • Xing, Xuejing & Anderson, Randy I. & Hu, Yan, 2016. "What׳s a name worth? The impact of a likeable stock ticker symbol on firm value," Journal of Financial Markets, Elsevier, vol. 31(C), pages 63-80.
    • Handle: RePEc:eee:finmar:v:31:y:2016:i:c:p:63-80
    DOI: 10.1016/j.finmar.2016.06.003
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    More about this item

    Keywords

    Ticker symbols; Tobin׳s Q; Mispricing; Liquidity;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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