The impact of blockchain related name changes on corporate performance
The impact of blockchain related name changes on corporate performance
This paper examines the impact of blockchain and crypto-related name changes on corpo- rate and financial performance of the corporations. We document several pieces of evidence suggesting that companies who partake in such "crypto-exuberant" naming practices be- come more volatile and offer substantial and persistent stock market premiums as a reward for their corporate identity change. However, the retroactive name changes harm firm’s short-term profitability and have a dampening effect on financial leverage of the company. This paper advances the Dotcom effect literature by providing novel results on the changing traditional pathways of price discovery and information flows after the announcement of corporate name changes to blockchain-related names. The identified contagion channels dis- play that crypto-exuberant companies become more susceptible to cryptocurrency markets, which should interest regulators and investors.
Blockchain, Corporate name changes, Crypto-exuberance, Cryptocurrency, Dotcom effect, FinTech, Information asymmetry
Akyildirim, Erdinc
d93ee3ff-70ad-457b-a083-a97f58a1df3e
Corbet, Shaen
8a3e20b1-891b-4102-82f2-e2c39a7a1d59
Sensoy, Ahmet
1904b38a-0119-448e-a168-aaeee2c63aa1
Yarovaya, Larisa
2bd189e8-3bad-48b0-9d09-5d96a4132889
December 2020
Akyildirim, Erdinc
d93ee3ff-70ad-457b-a083-a97f58a1df3e
Corbet, Shaen
8a3e20b1-891b-4102-82f2-e2c39a7a1d59
Sensoy, Ahmet
1904b38a-0119-448e-a168-aaeee2c63aa1
Yarovaya, Larisa
2bd189e8-3bad-48b0-9d09-5d96a4132889
Akyildirim, Erdinc, Corbet, Shaen, Sensoy, Ahmet and Yarovaya, Larisa
(2020)
The impact of blockchain related name changes on corporate performance.
Journal of Corporate Finance, 65, [101759].
(doi:10.1016/j.jcorpfin.2020.101759).
Abstract
This paper examines the impact of blockchain and crypto-related name changes on corpo- rate and financial performance of the corporations. We document several pieces of evidence suggesting that companies who partake in such "crypto-exuberant" naming practices be- come more volatile and offer substantial and persistent stock market premiums as a reward for their corporate identity change. However, the retroactive name changes harm firm’s short-term profitability and have a dampening effect on financial leverage of the company. This paper advances the Dotcom effect literature by providing novel results on the changing traditional pathways of price discovery and information flows after the announcement of corporate name changes to blockchain-related names. The identified contagion channels dis- play that crypto-exuberant companies become more susceptible to cryptocurrency markets, which should interest regulators and investors.
Text
The Impact of Blockchain Related Name Changes on Corporate Performance
- Accepted Manuscript
More information
Accepted/In Press date: 12 October 2020
e-pub ahead of print date: 21 October 2020
Published date: December 2020
Keywords:
Blockchain, Corporate name changes, Crypto-exuberance, Cryptocurrency, Dotcom effect, FinTech, Information asymmetry
Identifiers
Local EPrints ID: 444491
URI: http://eprints.soton.ac.uk/id/eprint/444491
ISSN: 0929-1199
PURE UUID: 06b63a1b-51d9-45a2-89fb-19b47b61fc2b
Catalogue record
Date deposited: 21 Oct 2020 16:31
Last modified: 17 Mar 2024 05:59
Export record
Altmetrics
Contributors
Author:
Erdinc Akyildirim
Author:
Shaen Corbet
Author:
Ahmet Sensoy
Download statistics
Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.
View more statistics
