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Beyond the blockchain announcement: Signaling credibility and market reaction

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  • Chen, Ka-Hin
  • Lai, Tze Leung
  • Liu, Qingfu
  • Wang, Chuanjie

Abstract

We study how signaling credibility of firms' announcements affects market reactions with the blockchain announcements as the research object. The blockchain announcements have led to a significantly positive increase in the value of listed firms since blockchain technology was valued in China. We find that high-tech firms with more technological attributes and reserves could be seen as more credible and trigger more significant stock returns than non-high-tech firms. In addition, state-owned high-tech firms with normal financial status and voluntary disclosure would augment such signaling credibility. In general, the results support that corporate announcements' signaling credibility is vital for market reaction.

Suggested Citation

  • Chen, Ka-Hin & Lai, Tze Leung & Liu, Qingfu & Wang, Chuanjie, 2022. "Beyond the blockchain announcement: Signaling credibility and market reaction," International Review of Financial Analysis, Elsevier, vol. 82(C).
    • Handle: RePEc:eee:finana:v:82:y:2022:i:c:s1057521922001703
    DOI: 10.1016/j.irfa.2022.102209
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    More about this item

    Keywords

    Blockchain announcement; Signaling credibility; Event study; Market reaction;
    All these keywords.

    JEL classification:

    • G12 - Financial Economics - - General Financial Markets - - - Asset Pricing; Trading Volume; Bond Interest Rates
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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