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 language | English |
|---|---|
| Publication status | Published - 23 May 2018 |