The Next Stock Market Bubble

In December of 2001, the Journal of Finance published a study titled “A by Any Other Name” by Michael J. Cooper, Orlin Dimitrov, and P. Raghavendra Rau that studied the bubblicious effects of companies renaming themselves something with in the name. The price of stocks adding .com gained an average of 53% above companies without the in the corporate name, and the authors concluded the following: “We argue that our results are driven by a degree of investor mania–investors seem to be eager to be associated with the Internet at all costs.” The fact that the Nasdaq took fifteen years to return to its 2000 high is a shorthand way of describing the bubble conditions that existed at the turn of the millennium.

On March 4, 2008, the professors Shih-An Yang, Robert C.W. Fok, and Yuanchen Chang wrote a paper titled “The Wealth Effects of Oil-Related Name … Read the rest of this article!