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The impact of blockchain related name changes on corporate performance

Akyildirim, Erdinc orcid logoORCID: 0000-0003-0102-4111, Corbet, Shaen orcid logoORCID: 0000-0001-7430-7417, Sensoy, Ahmet orcid logoORCID: 0000-0001-7967-5171 and Yarovaya, Larisa orcid logoORCID: 0000-0002-9638-2917 (2020) The impact of blockchain related name changes on corporate performance. Journal of Corporate Finance, 65 . ISSN 0929-1199

This paper examines the impact of blockchain and crypto-related name changes on corporate and financial performance of the corporations. We document several pieces of evidence suggesting that companies who partake in such "crypto-exuberant" naming practices become 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 display that crypto-exuberant companies become more susceptible to cryptocurrency markets, which should interest regulators and investors.
Item Type:Article (Published)
Additional Information:Article number: 101759
Uncontrolled Keywords:Blockchain; Cryptocurrency; Crypto-Exuberance; Dotcom Effect; Information Asymmetry; Corporate Name Changes
Subjects:Business > Finance
DCU Faculties and Centres:DCU Faculties and Schools > DCU Business School
Official URL:https://dx.doi.org/10.1016/j.jcorpfin.2020.101759
Copyright Information:© 2020 Elsevier. CC BY-NC-ND
ID Code:25993
Deposited On:10 Jun 2021 13:17 by Thomas Murtagh . Last Modified 12 Oct 2022 03:30

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