White knight in dark days? Supply chain finance firms, blockchain, and the COVID-19 pandemic

We investigate the impact of the announcement of the COVID-19 pandemic on the market value and trading volume of supply chain finance (SCF) firms. Using an event study, we observe a significant valuation loss and higher trading volume of SCF firms. However, blockchain-enabled SCF firms are protected from such valuation loss and volatility in trading. We find that higher research and development (R & D) and capital expenditures by firms prevent the loss. Moreover, the firm value of blockchain-enabled SCF firms is impacted by their mem-bership in a blockchain consortium and progress in blockchain implementation. Investors' confidence in blockchain reduces the market uncertainty.

Automated summary

The announcement of the COVID-19 pandemic had a significant impact on the market value and trading volume of supply chain finance (SCF) firms. Firms utilizing blockchain technology were protected from valuation loss, while higher research and development (R&D) and capital expenditures helped prevent losses. Additionally, investor confidence in blockchain reduced market uncertainty.