Abstract
We provide first evidence on the effect of alphabetical sorting on corporate per- formance based on over a decade of data covering seventeen EU countries in three European language families. We also measure the effects of using English words in a corporate name in a non-English-speaking country, of a corporate name containing a national(patriotic) word, and of simple linguistic properties highlighted in the brand- name marketing literature.
Using multiple measures of corporate performance, we find companies sorted low in the alphabet to be less successful in several European countries, particularly in services. Nationalwords are associated with substantially higher sales growth in, e.g., Poland, Norway, France and Spain, while the use of English words in company names curbs (fosters) sales growth in Romance- (Slavic-) language countries.