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Contribution Details

Type Journal Article
Scope Discipline-based scholarship
Title Nomen est omen? How and when company name fluency affects return expectations
Organization Unit
Authors
  • Achiel Fenneman
  • Dirk-Jan Janssen
  • Sven Nolte
  • Stefan Zeisberger
Item Subtype Original Work
Refereed Yes
Status Published in final form
Language
  • English
Journal Title PLoS ONE
Publisher Public Library of Science (PLoS)
Geographical Reach international
ISSN 1932-6203
Volume 18
Number 8
Page Range e0287995
Date 2023
Abstract Text Investors perceive stocks of companies with fluent names as more profitable. This perception may result from two different channels: a direct, non-deliberate affect toward fluent names or a deliberate interpretation of fluent names as a signal for company quality. We use preregistered experiments to disentangle these channels and test their limitations. Our results indicate the existence of a significant non-deliberate fluency effect, while the deliberate fluency effect can be activated and deactivated in boundary cases. Both effects are consistent across different groups of participants. However, whereas the fluency effect is strong in isolation, it has limitations when investors are confronted with additional information about the stock.
Free access at DOI
Digital Object Identifier 10.1371/journal.pone.0287995
Other Identification Number merlin-id:24257
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