I Am a Blockchain Too...

Research output: Working paper

Abstract

We investigate the price reaction of listed companies in response to blockchain-related announcements.The average abnormal return based on an international sample of 198 firms is approximately 12% with significantly greater returns for smaller firms and negligible returns for larger firms. We construct a blockchain index based on a portfolio of blockchain-related companies and show that the index follows the evolution of the bitcoin price. Our findings suggest that the price of bitcoin can be interpreted as an indicator of the expected success of the underlying blockchain technology.
Original languageEnglish
Publication statusPublished - 23 May 2018

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Announcement
Small firms
Large firms
Price reaction
Listed companies
Abnormal returns

Cite this

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title = "I Am a Blockchain Too...",
abstract = "We investigate the price reaction of listed companies in response to blockchain-related announcements.The average abnormal return based on an international sample of 198 firms is approximately 12{\%} with significantly greater returns for smaller firms and negligible returns for larger firms. We construct a blockchain index based on a portfolio of blockchain-related companies and show that the index follows the evolution of the bitcoin price. Our findings suggest that the price of bitcoin can be interpreted as an indicator of the expected success of the underlying blockchain technology.",
author = "Daniel Cahill and Dirk Baur and Zhangxin Liu and Wenling Yang",
year = "2018",
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N2 - We investigate the price reaction of listed companies in response to blockchain-related announcements.The average abnormal return based on an international sample of 198 firms is approximately 12% with significantly greater returns for smaller firms and negligible returns for larger firms. We construct a blockchain index based on a portfolio of blockchain-related companies and show that the index follows the evolution of the bitcoin price. Our findings suggest that the price of bitcoin can be interpreted as an indicator of the expected success of the underlying blockchain technology.

AB - We investigate the price reaction of listed companies in response to blockchain-related announcements.The average abnormal return based on an international sample of 198 firms is approximately 12% with significantly greater returns for smaller firms and negligible returns for larger firms. We construct a blockchain index based on a portfolio of blockchain-related companies and show that the index follows the evolution of the bitcoin price. Our findings suggest that the price of bitcoin can be interpreted as an indicator of the expected success of the underlying blockchain technology.

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