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)
Refereed:
Yes
Additional Information:
Article number: 101759
Uncontrolled Keywords:
Blockchain; Cryptocurrency; Crypto-Exuberance; Dotcom Effect; Information
Asymmetry; Corporate Name Changes