Journal
JOURNAL OF CORPORATE FINANCE
Volume 65, Issue -, Pages -Publisher
ELSEVIER
DOI: 10.1016/j.jcorpfin.2020.101759
Keywords
Blockchain; Cryptocurrency; Crypto-exuberance; Dotcom effect; Information asymmetry; Corporate name changes; FinTech
Categories
Ask authors/readers for more resources
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.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available