IDEAS home Printed from https://ideas.repec.org/a/taf/tjmaxx/v7y2020i3p367-388.html
   My bibliography  Save this article

Cryptocurrency valuation and ethics: a text analytic approach

Author

Listed:
  • James R. Barth
  • Hemantha S. B. Herath
  • Tejaswini C. Herath
  • Pei Xu

Abstract

A recent and potentially profound innovation is the creation of cryptocurrencies and the underlying technology that is essential for their use in various financial transactions. Given the anonymity of a user of a cryptocurrency, such digital currencies may be used for many different types of both lawful and illicit activities. The main purpose of this paper is to examine the extent to which ethical considerations associated with the use of cryptocurrencies affect the valuations attached to such currencies. The examination is based on a text analytic approach that involves measuring the extent to which ethical and unethical words are used in a discussion related to Bitcoin on Twitter to determine if there is a connection between ethics and cryptocurrency valuations. We find the frequency of an unethical discussion about Bitcoin is negatively associated with its price. In contrast, the frequency of an ethical discussion is positively associated with its price.

Suggested Citation

  • James R. Barth & Hemantha S. B. Herath & Tejaswini C. Herath & Pei Xu, 2020. "Cryptocurrency valuation and ethics: a text analytic approach," Journal of Management Analytics, Taylor & Francis Journals, vol. 7(3), pages 367-388, July.
    • Handle: RePEc:taf:tjmaxx:v:7:y:2020:i:3:p:367-388
    DOI: 10.1080/23270012.2020.1790046
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/23270012.2020.1790046
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/23270012.2020.1790046?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Camille Meyer & Marek Hudon, 2019. "Money and the Commons: An Investigation of Complementary Currencies and Their Ethical Implications," Journal of Business Ethics, Springer, vol. 160(1), pages 277-292, November.
    2. Michael Spence, 2002. "Signaling in Retrospect and the Informational Structure of Markets," American Economic Review, American Economic Association, vol. 92(3), pages 434-459, June.
    3. Kshetri, Nir, 2017. "Blockchain's roles in strengthening cybersecurity and protecting privacy," Telecommunications Policy, Elsevier, vol. 41(10), pages 1027-1038.
    4. Sean Foley & Jonathan R Karlsen & Tālis J Putniņš, 2019. "Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed through Cryptocurrencies?," The Review of Financial Studies, Society for Financial Studies, vol. 32(5), pages 1798-1853.
    5. Sebahattin Demirkan & Irem Demirkan & Andrew McKee, 2020. "Blockchain technology in the future of business cyber security and accounting," Journal of Management Analytics, Taylor & Francis Journals, vol. 7(2), pages 189-208, April.
    6. Claus Dierksmeier & Peter Seele, 2018. "Cryptocurrencies and Business Ethics," Journal of Business Ethics, Springer, vol. 152(1), pages 1-14, September.
    7. Walid Al-Saqaf & Nicolas Seidler, 2017. "Blockchain technology for social impact: opportunities and challenges ahead," Journal of Cyber Policy, Taylor & Francis Journals, vol. 2(3), pages 338-354, September.
    8. James Angel & Douglas McCabe, 2015. "The Ethics of Payments: Paper, Plastic, or Bitcoin?," Journal of Business Ethics, Springer, vol. 132(3), pages 603-611, December.
    9. Hemantha S. B. Herath & Tejaswini C. Herath & Paul Dunn, 2019. "Profit-Driven Corporate Social Responsibility as a Bayesian Real Option in Green Computing," Journal of Business Ethics, Springer, vol. 158(2), pages 387-402, August.
    10. Brooks Allen & Sarah K. Bryant, 2019. "The Market For Cryptocurrency: How Will It Evolve?," Global Economy Journal (GEJ), World Scientific Publishing Co. Pte. Ltd., vol. 19(03), pages 1-19, September.
    11. Michael Spence, 1973. "Job Market Signaling," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 87(3), pages 355-374.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. MaÅ‚gorzata Kutera, 2022. "Cryptocurrencies as a subject of financial fraud," Journal of Entrepreneurship, Management and Innovation, Fundacja Upowszechniająca Wiedzę i Naukę "Cognitione", vol. 18(4), pages 45-77.
    2. Martinčević, Ivana & Sesar, Vesna & Buntak, Krešimir, 2021. "Implications of Accounting and Tax Treatment of Cryptocurrencies," Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference (2021), Hybrid Conference, Zagreb, Croatia, in: Proceedings of the ENTRENOVA - ENTerprise REsearch InNOVAtion Conference, Hybrid Conference, Zagreb, Croatia, 9-10 September 2021, pages 376-388, IRENET - Society for Advancing Innovation and Research in Economy, Zagreb.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Flori, Andrea, 2019. "News and subjective beliefs: A Bayesian approach to Bitcoin investments," Research in International Business and Finance, Elsevier, vol. 50(C), pages 336-356.
    2. Sondes Mbarek & Donia Trabelsi & Michel Berne, 2020. "Are virtual currencies virtuous? Ethical and environmental issues," Post-Print hal-02434877, HAL.
    3. Teck Ming Tan & Jari Salo, 2023. "Ethical Marketing in the Blockchain-Based Sharing Economy: Theoretical Integration and Guiding Insights," Journal of Business Ethics, Springer, vol. 183(4), pages 1113-1140, April.
    4. Monica M. Sharif & Farshad Ghodoosi, 2022. "The Ethics of Blockchain in Organizations," Journal of Business Ethics, Springer, vol. 178(4), pages 1009-1025, July.
    5. Ferdinand Thies & Sören Wallbach & Michael Wessel & Markus Besler & Alexander Benlian, 2022. "Initial coin offerings and the cryptocurrency hype - the moderating role of exogenous and endogenous signals," Electronic Markets, Springer;IIM University of St. Gallen, vol. 32(3), pages 1691-1705, September.
    6. Jascha-Alexander Koch & Michael Siering, 2019. "The recipe of successful crowdfunding campaigns," Electronic Markets, Springer;IIM University of St. Gallen, vol. 29(4), pages 661-679, December.
    7. Danny Zhao‐Xiang Huang, 2022. "An integrated theory of the firm approach to environmental, social and governance performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 62(S1), pages 1567-1598, April.
    8. Naiditch, Claire & Vranceanu, Radu, 2011. "Remittances as a social status signaling device," Research in Economics, Elsevier, vol. 65(4), pages 305-318, December.
    9. Fatima, Samar & Desouza, Kevin C. & Denford, James S. & Dawson, Gregory S., 2021. "What explains governments interest in artificial intelligence? A signaling theory approach," Economic Analysis and Policy, Elsevier, vol. 71(C), pages 238-254.
    10. Narcyz Roztocki & Heinz Roland Weistroffer, 2015. "Investments in enterprise integration technology: An event study," Information Systems Frontiers, Springer, vol. 17(3), pages 659-672, June.
    11. Lamotte, Olivier & Chalençon, Ludivine & Mayrhofer, Ulrike & Colovic, Ana, 2021. "Intangible resources and cross-border acquisition decisions: The impact of reputation and the moderating effect of experiential knowledge," Journal of Business Research, Elsevier, vol. 131(C), pages 297-310.
    12. Min Chung Han, 2021. "Thumbs down on “likes”? The impact of Facebook reactions on online consumers’ nonprofit engagement behavior," International Review on Public and Nonprofit Marketing, Springer;International Association of Public and Non-Profit Marketing, vol. 18(2), pages 255-272, June.
    13. Taj, Saud A., 2016. "Application of signaling theory in management research: Addressing major gaps in theory," European Management Journal, Elsevier, vol. 34(4), pages 338-348.
    14. Liu, Chengyun & Su, Kun & Zhang, Miaomiao, 2021. "Water disclosure and financial reporting quality for social changes: Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 166(C).
    15. Maurer, Joshua D. & Creek, Steven A. & Allison, Thomas H. & Bendickson, Joshua S. & Sahaym, Arvin, 2023. "Affiliation rhetoric and digital orientation in crowdfunding appeals," Technological Forecasting and Social Change, Elsevier, vol. 190(C).
    16. Evila Piva & Cristina Rossi-Lamastra, 2018. "Human capital signals and entrepreneurs’ success in equity crowdfunding," Small Business Economics, Springer, vol. 51(3), pages 667-686, October.
    17. Kimberly F. Luchtenberg & Michael J. Seiler & Hua Sun, 2019. "Listing Agent Signals: Does a Picture Paint a Thousand Words?," The Journal of Real Estate Finance and Economics, Springer, vol. 59(4), pages 617-648, November.
    18. Claude Diebolt & Bachir El Murr, 2004. "A cobweb model of higher education and labour market dynamics," Brussels Economic Review, ULB -- Universite Libre de Bruxelles, vol. 47(3-4), pages 409-430.
    19. Luis A. Perez-Batres & Van V. Miller & Michael J. Pisani & Irene Henriques & Jose A. Renau-Sepulveda, 2012. "Why Do Firms Engage in National Sustainability Programs and Transparent Sustainability Reporting?," Management International Review, Springer, vol. 52(1), pages 107-136, February.
    20. Jorge M. Streb, 2006. "Job market signals and signs," CEMA Working Papers: Serie Documentos de Trabajo. 326, Universidad del CEMA.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tjmaxx:v:7:y:2020:i:3:p:367-388. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/tjma .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.