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Blockchain hysteria: Adding “blockchain” to company’s name

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  • Jain, Archana
  • Jain, Chinmay

Abstract

Using a list of companies that changed their names to add “blockchain” or “bitcoin” to their names, we find that after changing the names, these firms have a significant abnormal positive return that lasts for 2 months. The abnormal return turns negative 5 months after the change. This suggests that these firms changed their names to take advantage of the hysteria surrounding the price rise of bitcoin.

Suggested Citation

  • Jain, Archana & Jain, Chinmay, 2019. "Blockchain hysteria: Adding “blockchain” to company’s name," Economics Letters, Elsevier, vol. 181(C), pages 178-181.
    • Handle: RePEc:eee:ecolet:v:181:y:2019:i:c:p:178-181
    DOI: 10.1016/j.econlet.2019.05.011
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    References listed on IDEAS

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    1. Peggy M. Lee, 2001. "What's in a name.com?: The effects of ‘.com’ name changes on stock prices and trading activity," Strategic Management Journal, Wiley Blackwell, vol. 22(8), pages 793-804, August.
    2. Michael J. Cooper & Orlin Dimitrov & P. Raghavendra Rau, 2001. "A Rose.com by Any Other Name," Journal of Finance, American Finance Association, vol. 56(6), pages 2371-2388, December.
    3. Cooper, Michael J. & Khorana, Ajay & Osobov, Igor & Patel, Ajay & Rau, P. Raghavendra, 2005. "Managerial actions in response to a market downturn: valuation effects of name changes in the dot.com decline," Journal of Corporate Finance, Elsevier, vol. 11(1-2), pages 319-335, March.
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    Cited by:

    1. Kolbe, Maura & Mansouri, Sasan & Momtaz, Paul P., 2022. "Why do video pitches matter in crowdfunding?," Journal of Economics and Business, Elsevier, vol. 122(C).
    2. Corbet, Shaen & Hou, Yang & Hu, Yang & Lucey, Brian & Oxley, Les, 2021. "Aye Corona! The contagion effects of being named Corona during the COVID-19 pandemic," Finance Research Letters, Elsevier, vol. 38(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. Sharma, Prateek & Paul, Samit & Sharma, Swati, 2020. "What’s in a name? A lot if it has “blockchain”," Economics Letters, Elsevier, vol. 186(C).

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    More about this item

    Keywords

    Blockchain; Bitcoin; Corporate name change; Abnormal return; Event study;
    All these keywords.

    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G3 - Financial Economics - - Corporate Finance and Governance

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