Cryptic excitement: unveiling market reactions to Facebook's Metaverse and potential manipulation in China's stock market

Lingyu Huang and Ruoyu Mao

Finance Research Letters, 2024, vol. 60, issue C

Abstract: This study examines the impact of Facebook's rebranding on the Metaverse's renewed interest, revealing potential market manipulation concerns in China. Analyzing Chinese publicly listed firms entering the Metaverse, the research notes a surge in initial disclosures, aligned with Facebook's rebranding and increased investor sentiment. Investors' exaggerated reactions to Metaverse-related announcements are observed, alongside insiders' timed transactions leading to substantial profits during the Metaverse frenzy. The results underscore Chinese regulators' worries, highlighting the susceptibility of investors to companies' initial Metaverse disclosures.

Keywords: Metaverse; Corporate disclosures; Market reaction; Insider trading (search for similar items in EconPapers)
JEL-codes: G14 G30 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:60:y:2024:i:c:s1544612323012588

DOI: 10.1016/j.frl.2023.104886

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