Announcement effect of Blockchain investment on stock prices for Financial Companies

The blockchain technology refers to “a full distributed system for cryptographically capturing and storing a consistent, immutable, linear event log of transactions between networked actors.” It is one of the hottest innovative topics in recent years. The technology attracts a dramatic increasing amount of capital investment. The financial institutions are the major participant in blockchain development and application. This paper attempt to find out questions like: why blockchain technology catches companies, whether it is worth investing, and how it affects the firm’s value. To solve these questions, the event study methodology applied to the research. In the study, I differ three R&D project stages of blockchain technology and I find the announcements of blockchain investment positively affect the stock price of financial Companies and the effects are different at the three R&D process stages. The sample consists of 80 announcements that selected from news database Lexis Nexis and company’s news release center.