Research about the Effect of Company Name on Investor Recognition and Company Value

Abstract

In order to study the impact of company name on investor recognition and company value, this article constructs a set of evaluation system of the company name according to the Chinese way about thinking and Chinese characters from the terseness, smooth, moral and recognition, then I grade the listed companies. This article makes the comprehensive evaluation on behalf of the company name, the number of shareholders, the average number of shares hold by an owner and the institutional investors holding on behalf of the investor recognition, then makes the tobin’s Q and price-to-book on behalf of the company value. Afterwards, this article sets up a fixed effect panel regression model. The empirical research shows that: if the company’s name is concise, easy to pronounce, easy to remember and has a good moral, the company will have the higher investor recognition, and higher valuations.