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The impact of blockchain related name changes on corporate performance

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
0929-1199
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
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).

Record type: Article

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.

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The Impact of Blockchain Related Name Changes on Corporate Performance - Accepted Manuscript
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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
ORCID for Larisa Yarovaya: ORCID iD orcid.org/0000-0002-9638-2917

Catalogue record

Date deposited: 21 Oct 2020 16:31
Last modified: 28 Apr 2022 05:58

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Contributors

Author: Erdinc Akyildirim
Author: Shaen Corbet
Author: Ahmet Sensoy
Author: Larisa Yarovaya ORCID iD

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