I Am a Blockchain Too...

28 Pages Posted: 6 Jun 2018 Last revised: 5 Apr 2019

See all articles by Daniel Cahill

Daniel Cahill

University of Western Australia

Dirk G. Baur

University of Western Australia - Business School; Financial Research Network (FIRN)

Zhangxin Frank Liu

The University of Western Australia Business School

Joey (Wenling) Yang

The University of Western Australia

Multiple version iconThere are 2 versions of this paper

Date Written: October 1, 2018

Abstract

We investigate the price reaction of international listed companies in response to blockchain-related announcements. The average abnormal return based on a sample of 979 firm-announcements is approximately 5% with significantly higher returns for smaller firms and for announcements in late 2017 and early 2018. We develop a blockchain company portfolio based on blockchain-related announcements and show that the portfolio follows the evolution of the bitcoin price. Our findings suggest that investors use the performance of bitcoin as an indicator of the expected success of the underlying blockchain technology, and that firms make blockchain-related announcements to benefit from the hype surrounding a new technology.

Keywords: Blockchain; Bitcoin; announcement; event study; investor attention.

JEL Classification: G12, G14

Suggested Citation

Cahill, Daniel and Baur, Dirk G. and Liu, Zhangxin (Frank) and Yang, Joey (Wenling), I Am a Blockchain Too... (October 1, 2018). Available at SSRN: https://ssrn.com/abstract=3184059 or http://dx.doi.org/10.2139/ssrn.3184059

Daniel Cahill (Contact Author)

University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
Australia

Dirk G. Baur

University of Western Australia - Business School ( email )

School of Business
35 Stirling Highway
Crawley, Western Australia 6009
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

Zhangxin (Frank) Liu

The University of Western Australia Business School ( email )

School of Business
35 Stirling Highway
Crawley, Western Australia 6009
Australia

Joey (Wenling) Yang

The University of Western Australia ( email )

35 Stirling Highway
Crawley, Western Australia 6009
AUSTRALIA

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