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Short-term market impact of crypto firms’ bankruptcies on cryptocurrency markets

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  • Martins, António Miguel

Abstract

This paper examines the short-term market reaction of crypto firms’ bankruptcies on cryptocurrency markets. Using an event study for twenty-one crypto firms’ bankruptcies, the results show negative and statistically significant abnormal returns for the sample of cryptocurrency firm’s failures. Despite the existence of heterogeneous impacts surrounding bankruptcy announcements, the results reveal significant higher negative abnormal returns for cryptocurrency firm’s failures associated with high estimated losses and for the subsample of cryptocurrencies with less liquidity.

Suggested Citation

  • Martins, António Miguel, 2024. "Short-term market impact of crypto firms’ bankruptcies on cryptocurrency markets," Research in International Business and Finance, Elsevier, vol. 70(PB).
    • Handle: RePEc:eee:riibaf:v:70:y:2024:i:pb:s0275531924001636
    DOI: 10.1016/j.ribaf.2024.102370
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