2021
DOI: 10.1002/mde.3307
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Game of names: Blockchain premium in corporate names

Abstract: We examine stock price response around cryptocurrency‐related corporate name change announcements using an event study framework. We find that cryptocurrency‐related name changes generate larger gains in share price and volume than other corporate name changes. The valuation gains associated with cryptocurrency‐related name changes cannot be explained by standard asset pricing factors, firm and stock characteristics, industry specific shocks, or by the presence of outliers. These gains are higher when the anno… Show more

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Cited by 7 publications
(6 citation statements)
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“…Indeed, the presence of outliers can have a disproportionate impact on the results of parametric statistical tests and may obscure the different reactions of the market to the name change of the two firms' categories. To address this issue, I create an outlier-adjusted sample, as a robustness test, including all sample firms except those that fall in the top 10% or bottom 10% in terms of the cumulative abnormal return generated over the period of 1 day surrounding the announcement date, similarly to Sharma and Paul (2021). Results are reported in Table 4 and confirm that overall the market reacted positively to the announcement of the green name change only for non-Green companies.…”
Section: Insert Table 3 Herementioning
confidence: 90%
See 1 more Smart Citation
“…Indeed, the presence of outliers can have a disproportionate impact on the results of parametric statistical tests and may obscure the different reactions of the market to the name change of the two firms' categories. To address this issue, I create an outlier-adjusted sample, as a robustness test, including all sample firms except those that fall in the top 10% or bottom 10% in terms of the cumulative abnormal return generated over the period of 1 day surrounding the announcement date, similarly to Sharma and Paul (2021). Results are reported in Table 4 and confirm that overall the market reacted positively to the announcement of the green name change only for non-Green companies.…”
Section: Insert Table 3 Herementioning
confidence: 90%
“…First, to the best of my knowledge, this is the first study that compares the valuation gains observed around green-related name changes. Some earlier studies document abnormal stock price increase around cryptocurrency-related name changes (Sharma and Paul (2021), Akyildirim et al (2020), Jain and Jain (2019)) and Internet-related name changes (Lee (2001) and Cooper et al (2001)). The results of the present paper show that the effect of the announcement of green-related name changes alone produced substantial cumulative abnormal returns only for companies not associated with green activities prior to the announcement.…”
Section: Introductionmentioning
confidence: 98%
“…Studies, such as Akyildirim et al [98] , Sharma, and Paul [99] , etc., have used these control variables to explain the ARs generated by announcements.…”
Section: Methodsmentioning
confidence: 99%
“…Next, we apply a Welch t -test to determine whether the impact of DR on firms with and without share repurchase is significantly different or not. This Welch t -test in the context of event study is adopted by earlier studies (Sharma and Paul, 2021). Column 4 reports the differences of AARs between DRWOR and DRWR over different days around the event.…”
Section: Analysis and Findingsmentioning
confidence: 99%
“…Column 4 of the table reports the difference between CAARs of two groups of firms. Following Sharma and Paul (2021), we measure the statistical significance of the difference using Welch t -test. We find that the CAARs of DRWR are significantly lower around the event windows (−1, + 1), (−2, +2) and (−3, +3).…”
Section: Analysis and Findingsmentioning
confidence: 99%