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

Authors: Timo Rogalski; Dirk Schiereck

Addresses: Chair of Corporate Finance, TU Darmstadt, 64289 Darmstadt, Germany ' Chair of Corporate Finance, TU Darmstadt, 64289 Darmstadt, Germany

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.

DOI: 10.1504/IJMP.2025.144800

International Journal of Management Practice, 2025 Vol.18 No.2, pp.157 - 191

Received: 05 Sep 2023
Accepted: 16 Feb 2024
Published online: 03 Mar 2025 *

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