Augmented reality and stock returns
Augmented reality and stock returns
This paper investigates the relationship between Augmented Reality (AR) technology and firm value. To resolve empirical challenges, we leverage our methodology on the staggered, national releases of Pokémon Go and apply a Difference-In-Differences (DID) framework to examine the perceived value of future benefits and growth opportunities of AR. Using a country-day panel of 43 national equity indexes, we show significant positive abnormal returns after the releases of the game, with the strongest impact within three days. Industry-level tests reveal a widespread, immediate recognition of the benefits of AR in firm value, whilst technology industries show relatively more persistent impacts. Our findings contribute to the ongoing debate on whether IT investment enhances value and offer an empirical justification for the substantial investments and commitments in developing AR and other related applications.
Evans, Kevin P.
e8653f68-5d2e-4ac9-8c3a-074b8187787c
Hasan, Iftekhar
c13f965e-f6fb-4a1b-af48-e7cb8340f3d0
Leung, Woon Sau
73a8bf54-6035-4f11-a9ec-74272abbacb5
Song, Wei
3add8071-2708-4b09-beeb-c5e3a6ba7bd1
Evans, Kevin P.
e8653f68-5d2e-4ac9-8c3a-074b8187787c
Hasan, Iftekhar
c13f965e-f6fb-4a1b-af48-e7cb8340f3d0
Leung, Woon Sau
73a8bf54-6035-4f11-a9ec-74272abbacb5
Song, Wei
3add8071-2708-4b09-beeb-c5e3a6ba7bd1
Evans, Kevin P., Hasan, Iftekhar, Leung, Woon Sau and Song, Wei
(2025)
Augmented reality and stock returns.
In,
Ferris, Stephen P., John, Kose and Makhija, Anil K.
(eds.)
Advances in Financial Economics.
(Advances in Financial Economics, 26)
Emerald Publishing.
(In Press)
Record type:
Book Section
Abstract
This paper investigates the relationship between Augmented Reality (AR) technology and firm value. To resolve empirical challenges, we leverage our methodology on the staggered, national releases of Pokémon Go and apply a Difference-In-Differences (DID) framework to examine the perceived value of future benefits and growth opportunities of AR. Using a country-day panel of 43 national equity indexes, we show significant positive abnormal returns after the releases of the game, with the strongest impact within three days. Industry-level tests reveal a widespread, immediate recognition of the benefits of AR in firm value, whilst technology industries show relatively more persistent impacts. Our findings contribute to the ongoing debate on whether IT investment enhances value and offer an empirical justification for the substantial investments and commitments in developing AR and other related applications.
Text
Manuscript_Pokemon Go final
- Accepted Manuscript
Restricted to Repository staff only until 8 January 2026.
Request a copy
More information
Accepted/In Press date: 9 November 2025
Identifiers
Local EPrints ID: 507383
URI: http://eprints.soton.ac.uk/id/eprint/507383
ISSN: 1569-3732
PURE UUID: 7ca1be82-33a0-41d1-bd9d-14c6a22e8e63
Catalogue record
Date deposited: 08 Dec 2025 17:40
Last modified: 09 Dec 2025 03:09
Export record
Contributors
Author:
Kevin P. Evans
Author:
Iftekhar Hasan
Author:
Woon Sau Leung
Author:
Wei Song
Editor:
Stephen P. Ferris
Editor:
Kose John
Editor:
Anil K. Makhija
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