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Game of names: Blockchain premium in corporate names

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  • Prateek Sharma
  • Samit Paul

Abstract

We examine stock price response around cryptocurrency‐related corporate name change announcements using an event study framework. We find that cryptocurrency‐related name changes generate larger gains in share price and volume than other corporate name changes. The valuation gains associated with cryptocurrency‐related name changes cannot be explained by standard asset pricing factors, firm and stock characteristics, industry specific shocks, or by the presence of outliers. These gains are higher when the announcements happen during periods of high sentiment for cryptocurrencies. There is evidence that shareholders with better access to private information about such name changes are able to front‐run other shareholders.

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  • Prateek Sharma & Samit Paul, 2021. "Game of names: Blockchain premium in corporate names," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(5), pages 1059-1078, July.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:5:p:1059-1078
    DOI: 10.1002/mde.3307
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    2. Sharma, Prateek & Shukla, Dhirendra Mani & Raj, Alok, 2023. "Blockchain adoption and firm performance: The contingent roles of intangible capital and environmental dynamism," International Journal of Production Economics, Elsevier, vol. 256(C).
    3. Latino, Carmelo, 2023. "Surfing the green wave: What's in a "green" name change?," SAFE Working Paper Series 410, Leibniz Institute for Financial Research SAFE.
    4. Xiao, Lu & Xu, Xiaolin & Xue, Weili, 2024. "Blockchain mania without bitcoins: Evidence from the Chinese stock market," Research in International Business and Finance, Elsevier, vol. 67(PB).

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