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Buzzword or fuzzword: an event study of the metaverse in the Chinese stock market

Yingbo Xu (Business School, Qingdao University, Qingdao, China)
Wei Liu (Business School, Qingdao University, Qingdao, China)
Tong He (Entrepreneur College (Taicang), Xi'an Jiaotong-Liverpool University, Suzhou, China)
Sang-Bing Tsai (School of Business, WUYI University, Wuyishan, China)

Internet Research

ISSN: 1066-2243

Article publication date: 28 February 2023

Issue publication date: 1 February 2024




“Metaverse” has become a buzzword in the Chinese stock market. However, it remains unclear whether a firm's metaverse-related announcements will elicit positive stock market reactions. Whether and how stakeholder reactions are influenced by a firm's metaverse-related readiness also needs to be further explored. This study aims to discuss the aforementioned objective.


The authors derived a set of factors based on readiness theory and business ecosystem literature and extend them into the context of the metaverse. The authors used a sample of 642 Chinese listed firms in 2021 to investigate the hypotheses through the event study.


The study’s findings show that metaverse coverage induces a positive stock market reaction, but it is subject to three moderating effects. The authors introduce the novel concepts of IT readiness, ecosystem readiness and digital infrastructure readiness as the moderators. Stakeholders perceive metaverse announcements as overhyped, and stock prices do not fluctuate significantly after a metaverse announcement when the listed firms are not ready to embrace the metaverse.


This study is one of the first that introduces the event study method into the metaverse research, and it reveals that different levels of readiness influence stakeholders' evaluations and reactions to corporate metaverse coverage. This provides empirical evidence on metaverse development in China from the stock market's perspective.



This study received financial support from the Science and Technology Support Plan for Youth Innovation of Colleges and Universities of Shandong Province of China [2022RW033].


Xu, Y., Liu, W., He, T. and Tsai, S.-B. (2024), "Buzzword or fuzzword: an event study of the metaverse in the Chinese stock market", Internet Research, Vol. 34 No. 1, pp. 174-194.



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