The impact of blockchain related name changes on corporate performance

Erdinc Akyildirim, Shaen Corbet, Ahmet Sensoy and Larisa Yarovaya

Journal of Corporate Finance, 2020, vol. 65, issue C

Abstract: 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.

Keywords: Blockchain; Cryptocurrency; Crypto-exuberance; Dotcom effect; Information asymmetry; Corporate name changes; FinTech (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (50)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:corfin:v:65:y:2020:i:c:s0929119920302030

DOI: 10.1016/j.jcorpfin.2020.101759

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