Bubbles and the value of innovation

Haddad, Valentin; Ho, P.; Loualiche, Erik

doi:10.1016/j.jfineco.2022.04.006

Cited by 8 publications

(2 citation statements)

References 35 publications

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“…Özdurak and Alcan (2021) reveal that the U.S. should be cautious about the second internet bubble since 26% of Standard & Poor's (S&P) 500 market cap is driven by Facebook, Apple, Amazon, Netflix, Alphabet and Microsoft stocks, which are all tech stocks. Haddad et al (2022) suggest that booming tech innovation usually coincides with intense speculation in financial markets; specifically, a tech innovation boosts the share price of its creator by 40%.…”

Section: The Internet or Tech Bubblementioning

confidence: 99%

“…However, the occurrences and reasons of digital tech bubbles in China have not been comprehensively explored in the existing efforts. First, the previous analyses mainly focus on the internet bubble (Campello & Graham, 2013;Chan, 2014;Chang et al, 2019) and the tech bubble (Kassouri et al, 2021;Haddad et al, 2022), as well as a bubble of products based on digital technology (e.g., cryptocurrencies), but no study has probed digital tech bubbles. Second, the previous efforts of a bubble have only proven its existence but provided no empirical evidence on the underlying causes (Li et al, 2020;Wang et al, 2020;Nguyen & Waters, 2022).…”

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confidence: 99%

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Are There Digital Tech Bubbles in China?

Qin,

Su,

Qiu

et al. 2023

Technological and Economic Development of Economy

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This exploration employs the generalized supremum augmented Dickey-Fuller (GSADF) approach to explore whether there are digital tech bubbles in China. The empirical results suggest the existence of multiple digital tech bubbles, which are mostly accompanied by an excessive rise. However, the appearance of digital tech bubbles is curbed since 2016, mainly due to the increasing mature regulations in relevant fields. Besides, bubbles in different digital technologies are similar during the same period, which could be attributed to the close relationships among them. Additionally, we further investigate the factors influencing the explosive behaviours, and find that the Chinese stock market positively affects digital tech bubbles, while economic policy uncertainties and situations negatively influence such explosive behaviors. In the context of the new round of scientific and technological revolution and industrial transformation, these conclusions provide valuable implications to achieve the target of constructing a “Digital China” by becoming moderately cautious about potential bubbles in the digital tech industry.

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Section: The Internet or Tech Bubblementioning

confidence: 99%