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Paper Number
1543
Paper Type
Complete
Description
Prior research has demonstrated that blockchain announcements are associated with significant stock market reactions on the day of the announcement. However, it is unclear what factors may influence the positive market reaction at the firm level. Moreover, it is unclear whether national policies will affect positive market reactions. Using an event study methodology, we examine investors’ reactions to blockchain announcements issued by Chinese listed companies, taking organizational factors and national policies into account. Results indicate that the stock market reacts positively to blockchain announcements in the IT sector on the day of the announcement. However, there are no significant differences between manufacturing companies and other companies regarding abnormal stock returns. In addition, a CIO (or CTO) and a high percentage of executives with a background in R&D will enhance the positive stock market reaction. Furthermore, we demonstrate that national policies play a significant role in influencing positive stock market reactions.
Recommended Citation
Zhang, Yanlin and Chen, Jiawei, "Risk and Return of Blockchain Announcements in Chinese Stock Market – An Event Study" (2022). ICIS 2022 Proceedings. 8.
https://aisel.aisnet.org/icis2022/blockchain/blockchain/8
Risk and Return of Blockchain Announcements in Chinese Stock Market – An Event Study
Prior research has demonstrated that blockchain announcements are associated with significant stock market reactions on the day of the announcement. However, it is unclear what factors may influence the positive market reaction at the firm level. Moreover, it is unclear whether national policies will affect positive market reactions. Using an event study methodology, we examine investors’ reactions to blockchain announcements issued by Chinese listed companies, taking organizational factors and national policies into account. Results indicate that the stock market reacts positively to blockchain announcements in the IT sector on the day of the announcement. However, there are no significant differences between manufacturing companies and other companies regarding abnormal stock returns. In addition, a CIO (or CTO) and a high percentage of executives with a background in R&D will enhance the positive stock market reaction. Furthermore, we demonstrate that national policies play a significant role in influencing positive stock market reactions.
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Comments
07-Blockchain