The Valuation Effects of Corporate Name Changes

* American business is registering an increasing number of corporate name changes: 5,128 companies adopted new titles in the 1982-1986 five-year period, and over 1,500 name changes were made during 1987.1 In the first half of 1987, for example, 919 corporations changed their names-the fastest pace ever, and 59% more than in the first half of 1986. Corporate mergers and acquisitions accounted for 54% of the 1987 changes; divestitures caused 17%.2 Creating a new image is the most often cited motivation for the remainder. Other rea-