Stock name length and high visibility premium

XueJun Jin, YiFan Shen and Bin Yu

Finance Research Letters, 2021, vol. 39, issue C

Abstract: High stock visibility reduces the cost of capital and creates high firm value. In China's A-share market, only 427 stocks have a three-character name, while almost 3000 stocks have four-character names; we use posts read and reply at BBS to verify the high visibility of former. We then use stock name length as the measure of stock visibility and examine abnormally high returns of stocks with high visibility. We find that the premiums of three-character length name stocks exist after controlling for systematic risks, and that premiums could decrease when the information environment for stocks improves.

Keywords: Stock name; Stock visibility; Investor base; Information environment (search for similar items in EconPapers)
JEL-codes: G14 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:39:y:2021:i:c:s1544612320304992

DOI: 10.1016/j.frl.2020.101595

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