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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...
Autores principales: | , , , |
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Formato: | Online Artículo Texto |
Lenguaje: | English |
Publicado: |
Public Library of Science
2023
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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. |
format | Online Article Text |
id | pubmed-10431612 |
institution | National Center for Biotechnology Information |
language | English |
publishDate | 2023 |
publisher | Public Library of Science |
record_format | MEDLINE/PubMed |
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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