Research On Corporate Litigation,Stock Renaming And Corporate Value Under Reputation Mechanism

There is a widespread phenomenon of renaming listed companies in both domestic and international markets.According to statistics,over 30% of listed companies in the United States have a history of renaming,and companies listed in the UK,Japan,and Germany also frequently undergo renaming.In recent years,there has also been a wave of renaming in China.There are many reasons for company renaming,including substantive renaming caused by changes in controlling shareholders,company mergers and acquisitions,and changes in main business,as well as non substantive renaming caused by company strategic adjustments and reputation improvement.Under the unique cultural background of our country and the false promotion of some digital media,will the litigation of listed companies have a reputation effect? Is there a motivation for listed companies to change their names to avoid reputation losses? How does a company achieve its goals? The exploration of the above issues in this article not only enriches the theory of behavioral finance,but also explores the behavioral motivation of enterprises from a practical perspective,which has certain practical significance.To explore the above issues,this article takes the litigation of listed companies as an example and selects companies that underwent renaming in A-share listed companies from2010 to 2019 as the basic Sample of renaming companies.It empirically examines the correlation between corporate litigation and corporate value,as well as the impact of renaming on the value of litigation companies.In the analysis of mechanism effects,analyze the transmission mechanism of litigation and renaming from the perspectives of capital market,product market,principal-agent conflict,and loan market.The research results indicate that: firstly,during the litigation period of listed companies,the company value of listed companies decreases,indicating that the litigation disputes of listed companies have caused social reputation losses of listed companies.Secondly,litigation by listed companies has a positive incentive effect on company renaming.The increase in the number and amount of litigation by listed companies increases the likelihood of motivation for renaming.Thirdly,the renaming of listed companies has a masking effect on the company value of litigation companies,indicating that renaming of listed companies is beneficial for alleviating reputation losses caused by litigation.As listed companies become increasingly involved in litigation cases and involve an increasing amount of money,the likelihood of avoiding reputational damage through renaming increases,and their performance is particularly prominent in capital markets and internal agency issues.From the conclusion,it can be seen that listed companies are further strengthening their emphasis on reputation.Corporate litigation,as a negative credit rating,is seen as a punishment for corporate misconduct and has certain effectiveness in regulating corporate behavior.However,if companies with information advantages can reduce the penalties brought by reputation under incomplete market information,the regulatory role of the Law on corporate behavior will be greatly reduced.This requires the government or regulatory authorities to take favorable measures to leverage the influence of culture on corporate behavior and strengthen the company’s sense of responsibility in the market economy.