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Nomen est omen? How and when company name fluency affects return expectations

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...

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Detalles Bibliográficos
Autores principales: Fenneman, Achiel, Janssen, Dirk-Jan, Nolte, Sven, Zeisberger, Stefan
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2023
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10431612/
https://www.ncbi.nlm.nih.gov/pubmed/37585410
http://dx.doi.org/10.1371/journal.pone.0287995
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author Fenneman, Achiel
Janssen, Dirk-Jan
Nolte, Sven
Zeisberger, Stefan
author_facet Fenneman, Achiel
Janssen, Dirk-Jan
Nolte, Sven
Zeisberger, Stefan
author_sort Fenneman, Achiel
collection PubMed
description 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.
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spelling pubmed-104316122023-08-17 Nomen est omen? How and when company name fluency affects return expectations Fenneman, Achiel Janssen, Dirk-Jan Nolte, Sven Zeisberger, Stefan PLoS One Research Article 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. Public Library of Science 2023-08-16 /pmc/articles/PMC10431612/ /pubmed/37585410 http://dx.doi.org/10.1371/journal.pone.0287995 Text en © 2023 Fenneman et al https://creativecommons.org/licenses/by/4.0/This is an open access article distributed under the terms of the Creative Commons Attribution License (https://creativecommons.org/licenses/by/4.0/) , which permits unrestricted use, distribution, and reproduction in any medium, provided the original author and source are credited.
spellingShingle Research Article
Fenneman, Achiel
Janssen, Dirk-Jan
Nolte, Sven
Zeisberger, Stefan
Nomen est omen? How and when company name fluency affects return expectations
title Nomen est omen? How and when company name fluency affects return expectations
title_full Nomen est omen? How and when company name fluency affects return expectations
title_fullStr Nomen est omen? How and when company name fluency affects return expectations
title_full_unstemmed Nomen est omen? How and when company name fluency affects return expectations
title_short Nomen est omen? How and when company name fluency affects return expectations
title_sort nomen est omen? how and when company name fluency affects return expectations
topic Research Article
url https://www.ncbi.nlm.nih.gov/pmc/articles/PMC10431612/
https://www.ncbi.nlm.nih.gov/pubmed/37585410
http://dx.doi.org/10.1371/journal.pone.0287995
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