Surfing the green wave: What's in a "green" name change?

Arbeitspapier

This paper investigates stock market reaction to greenwashing by analyzing a new channel whereby companies change their names to green-related ones (i.e., names that evoke green and sustainable sentiments) to persuade the public that their activities are green. The findings reveal a striking positive stock price reaction to the announcement of corporate name changes to green-related names only for companies not involved in green activities at the time of the announcement. However, over an extended period of time, companies unrelated to green activities experience substantial negative abnormal returns if they fail to align their operational focus with the new name after the change.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: SAFE Working Paper ; No. 410

Classification and Topics

• Classification: Wirtschaft ; Corporate Culture; Diversity; Social Responsibility ; Investment Banking; Venture Capital; Brokerage; Ratings and Ratings Agencies ; Portfolio Choice; Investment Decisions
• Subject: Corporate Social Responsibility ; Sustainable Investments ; Greenwashing ; Corporate Name Change

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Latino, Carmelo
• Event: Veröffentlichung
• (who): Leibniz Institute for Financial Research SAFE
• (where): Frankfurt a. M.
• (when): 2023

Further information

• DOI: doi:10.2139/ssrn.4670504
• Handle: http://hdl.handle.net/10419/280965
• Last update: 10.03.2025, 11:43 AM CET