Author(s)

Xingyue Peng

Corresponding Author

Xingyue Peng

Abstract

Enterprise renaming is a widespread economic phenomenon. The renaming not only represents the adjustment and transformation of the enterprise business model, but also demonstrates the courage of the enterprise reform. By changing the name, listed companies can quickly establish their market positioning, change the understanding of investors, and also play the role of advertising, which can be said to kill many birds with one stone. In recent years, Chinese listed companies have changed their names in order to promote the transformation and development of enterprises and seek the maximum value of enterprises. Since the "5.19" market in 1999, there has been a wave of renaming in Shanghai and Shenzhen Stock Exchanges. "Science and technology" and "high technology" have become the most frequently used words in the new names. In the trend of enterprise renaming, Chenxin Technology has changed its name three times since 2015. This paper first classifies the three renaming events of Chenxin Technology according to the operation situation and the change of stock rights, and then uses Tobin's q value as the index of enterprise value to study how the three renaming of Chenxin Technology affects the enterprise value. Finally, based on the conclusions of the study, this paper puts forward some suggestions for investors, listed companies and relevant departments.

Keywords

Enterprise rename, Enterprise value, Tobin's q