Stock Market Reactions to Corporate Blockchain Announcements

The dissertation's central focus lies in investigating the influence of temporal, industry-specific, firm-specific, and project-specific factors on the stock market risk and return associated with corporate blockchain announcements. Structured into three chapters, the research employs theoretical frameworks and empirical analyses to uncover nuanced insights. Chapter 2, anchored in signaling theory, examines the general market impact of corporate blockchain announcements, considering temporal factors, cryptocurrency hype phases, and differences between US and EU-based companies. It reveals significant positive stock market returns associated with blockchain news, amplified by project success, business-relatedness, and cryptocurrency hype periods. Chapter 3 extends the analysis to industry-level factors, revealing that firms in the Information Technology industry benefit more from blockchain announcements. It explores additional project-level effects, such as blockchain partnerships and consortium joinings, and assesses their impact on market risk. The findings suggest that blockchain announcements do not substantially alter a firm's risk profile. Chapter 4 focuses on specific blockchain use cases, emphasizing environmental, social, and governance (ESG) issues. It uncovers significant positive market reactions to ESG-related blockchain announcements and explores shareholder returns in supply chain management and finance-related use cases. The study suggests that shareholders react more favorably to project-specific announcements and less favorably to initiatives involving external IT service providers. By thoroughly analyzing diverse factors, this dissertation contributes to the ongoing academic discourse on the valuation of blockchain technology, offering a comprehensive understanding of the dynamics shaping corporate market value and risk in the era of blockchain adoption