Is blockchain worth it? Value drivers of stock market returns to corporate blockchain announcements

Timo Rogalski and Dirk Schiereck

International Journal of Management Practice, 2025, vol. 18, issue 2, 157-191

Abstract: In the era of emerging technologies, many firms explore the role of blockchain technology and its business value impact. Research on firm value has shown that companies benefit from executing blockchain projects, but little is known about specific value drivers. Theoretically founded, we demonstrate under which conditions blockchain provides additional firm value. Utilising the event study methodology, we examine investors' reactions to companies announcing blockchain initiatives and apply the theoretical lens of signaling to explain factors that lead to positive stock market reactions. Based on an international sample of 606 blockchain announcements, our study shows that stock markets react more positively to blockchain projects if the project has been successfully finished, relates to the company's business processes, or is announced by firms based in the USA. Moreover, announcements during blockchain and cryptocurrency hypes lead to higher stock market returns.

Keywords: blockchain; event study; market value; signalling. (search for similar items in EconPapers)
Date: 2025
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