Economics at your fingertips  

Does Cryptocurrency Hurt African Firms?

Mina Sami () and Wael Abdallah ()
Additional contact information
Mina Sami: Department of Economics, American University in Cairo, New Cairo 11835, Egypt
Wael Abdallah: Department of Management, American University in Cairo, New Cairo 11835, Egypt

Risks, 2022, vol. 10, issue 3, 1-17

Abstract: This paper aimed to assess the effect of the cryptocurrency market on firms’ market value, especially on the sectoral level, in Africa. To reach the study’s main goal, the authors adopted the Panel-Corrected Standard Errors (PCSEs) and Panel Double-Clustered Standard Errors (PDCSEs). Using firm-level data, the results of this study can be summarized as follows: (a) The cryptocurrency market hurts the firm market value in Africa. (b) The firms operating across different sectors respond disproportionally to the cryptocurrency market. For instance, the sectors that offer low returns in Africa (industrial, energy, financial) negatively respond to the cryptocurrency market, while the sectors that offer high returns (real estate and information technology) are not significantly affected. (c) The cryptocurrency market has a perverse effect on less experienced and highly indebted firms. (d) The consistent policies of governments to ban cryptocurrency do not work efficiently.

Keywords: cryptocurrency; sector; Africa; market cap (search for similar items in EconPapers)
JEL-codes: C G0 G1 G2 G3 K2 M2 M4 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf) (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

Risks is currently edited by Dr. Sheryl Yin

More articles in Risks from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().

Page updated 2022-06-11
Handle: RePEc:gam:jrisks:v:10:y:2022:i:3:p:53-:d:762049