The Daily Stat: Investors Will Like Your Company Better if You Shorten Its Name

 

Are you having trouble viewing this email? If so, click here to see it in a web browser.

September 12, 2013 Investors Will Like Your Company Better if You Shorten Its Name On average, companies with short, simple names attract more shareholders, generate greater amounts of stock trading, and perform better on certain financial measures than companies with hard-to-process names such as National Oilwell Varco and Freeport-McMoRan Copper & Gold, say T. Clifton Green of Emory University and Russell E. Jame of the University of Kentucky. A 1-step increase in name "fluency" on a 5-step scale, such as reducing name length by 1 word, is associated with a 2.53% increase in market-to-book ratio, which would translate to $3.75 million in added market value for the median-size firm in the authors' sample. Selecting an easy-to-process company name is a low-cost method for improving investor recognition and increasing firm value, the authors say. SOURCE: Company name fluency, investor recognition, and firm value

PREVIOUS STATS Analyst Scrutiny Impedes Corporate Innovation Weighing the Value of an Infantry Soldier's Life A Discount May Devalue a Product More Than a Giveaway Don't Tell a Suffering Coworker "It Could Have Been Worse" Money's Other Purpose: Easing Our Fear of Death Confronted with Attractive Female Opponents, Male Chess Players Take Greater Risks

BEST SELLERS HBR's 10 Must Reads: The Essentials | HBR's 10 Must Reads Boxed Set | HBR Guide to Persuasive Presentations | HBR Guide to Better Business Writing | HBR Guide to Getting the Right Work Done

FEATURED PRODUCT The First 90 Days App for iPhone and Android MAKE YOUR NEXT CAREER TRANSITION A SUCCESS. Download The First 90 Days App today to help you stay ahead of the game. Download on the App Store » Download on Google Play »

FEATURED PRODUCT The First 90 Days, Updated and Expanded: Proven Strategies for Getting Up to Speed Faster and Smarter HBR Press Book Transitions are a critical time for leaders. In this updated and expanded version of the international bestseller The First 90 Days, Michael D. Watkins offers proven strategies for conquering the challenges of transitions—no matter where you are in your career. Watkins, a noted expert on leadership transitions and adviser to senior leaders in all types of organizations, also addresses today's increasingly demanding professional landscape, where managers face not only more frequent transitions but also steeper expectations once they step into their new jobs. By walking you through every aspect of the transition scenario, Watkins identifies the most common pitfalls new leaders encounter and provides the tools and strategies you need to avoid them. You'll learn how to secure critical early wins, an important first step in establishing yourself in your new role. Each chapter also includes checklists, practical tools, and self-assessments to help you assimilate key lessons and apply them to your own situation. Whether you're starting a new job, being promoted from within, embarking on an overseas assignment, or being tapped as CEO, how you manage your transition will determine whether you succeed or fail. Use this book as your trusted guide. Buy It Now!

ADVERTISEMENT

HBR.ORG | THE MAGAZINE | BLOGS | BOOKS | CASES | STORE | SUBSCRIBE TO HBR UNSUBSCRIBE | NEWSLETTERS PRIVACY POLICY | CONTACT Copyright © 2013 Harvard Business School Publishing, an affiliate of Harvard Business School. All rights reserved. Harvard Business Publishing 60 Harvard Way Boston, MA 02163 CUSTOMER SERVICE: 800-545-7685 (US/Canada) 1-617-783-7600 (outside the U.S. and Canada)