Blockchain announcements and stock value: a technology management perspective
International Journal of Operations & Production Management
ISSN: 0144-3577
Article publication date: 28 March 2022
Issue publication date: 6 April 2022
Abstract
Purpose
This study aims to explore the impact of blockchain announcements on enterprises' stock market value.
Design/methodology/approach
Based on resource-based theory, this study constructs a complete framework of the impact mechanism of blockchain announcements on the stock price of the announcing firm using the data of 143 blockchain announcements. An event study methodology is used in this research, and the market model, market-adjusted model and Carhart four-factor model are used to estimate stock abnormal returns after the blockchain announcement; and the cross-sectional regression model is used to test the influencing factors.
Findings
Blockchain announcements elicit a significantly positive market reaction on the release day. Compared to announcements not pertaining to technical innovation, blockchain technical innovation announcements exhibit a more positive market reaction towards the announcing companies. Strategic-level announcements exhibit a more positive market reaction than operational-level announcements. Enterprise characteristics, such as enterprise-scale and enterprise innovation ability, do not affect stock market reactions to blockchain announcements.
Practical implications
The findings reveal the economic value of conducting blockchain activities in the Chinese stock market. Findings of this study can help managers understand the value of implementing blockchain activities in a different market environment and guide them on how to improve the market value of their enterprises through the active implementation of blockchain activities.
Originality/value
To the best of the authors’ knowledge, this is the first event study to focus solely on the value of pure blockchain announcements in an emerging market. This study considers multiple resource and capability factors that would influence blockchain technology adoption, improve the current understanding of how blockchain announcements affect corporate stock prices and provide directions for future comparative studies of market reactions to blockchain announcements in different stock markets.
Keywords
Acknowledgements
This research is supported by the Major Program of the National Social Science Foundation of China (Grant No. 18ZDA060). The reviewers' comments are also highly appreciated.
The authors sincerely thank the editor and reviewers for their critical comments, which led to the major improvement of this paper.
Conflict of interest: The authors declare that there is no conflict of interest regarding the publication of this article.
Citation
Liu, W., Wang, J., Jia, F. and Choi, T.-M. (2022), "Blockchain announcements and stock value: a technology management perspective", International Journal of Operations & Production Management, Vol. 42 No. 5, pp. 713-742. https://doi.org/10.1108/IJOPM-08-2021-0534
Publisher
:Emerald Publishing Limited
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