Beyond the blockchain announcement: Signaling credibility and market reaction

Ka-Hin Chen, Tze Leung Lai, Qingfu Liu and Chuanjie Wang

International Review of Financial Analysis, 2022, vol. 82, issue C

Abstract: We study how signaling credibility of firms' announcements affects market reactions with the blockchain announcements as the research object. The blockchain announcements have led to a significantly positive increase in the value of listed firms since blockchain technology was valued in China. We find that high-tech firms with more technological attributes and reserves could be seen as more credible and trigger more significant stock returns than non-high-tech firms. In addition, state-owned high-tech firms with normal financial status and voluntary disclosure would augment such signaling credibility. In general, the results support that corporate announcements' signaling credibility is vital for market reaction.

Keywords: Blockchain announcement; Signaling credibility; Event study; Market reaction (search for similar items in EconPapers)
JEL-codes: G12 G14 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finana:v:82:y:2022:i:c:s1057521922001703

DOI: 10.1016/j.irfa.2022.102209

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