Harakeh, M., Diri, M.E., Lambrinoudakis, C. orcid.org/0000-0002-6575-9814 et al. (1 more author) (2024) The impact of blockchain adoption on corporate investment efficiency. Economics Letters, 236. 111603. ISSN 0165-1765
Abstract
This study investigates the impact of blockchain technology adoption on corporate investment efficiency. Utilizing a difference-in-differences methodology on an international sample of Forbes Global 2000 companies between 2012 and 2021, we find that firms implementing blockchain exhibit significantly higher investment efficiency post-adoption compared to non-adopters. This effect is more pronounced among ex ante informationally opaque firms. Our results suggest that blockchain adoption reduces overinvesting activities by restricting avenues for managerial discretion through enhanced transparency. Our findings contribute to the growing literature on blockchain's real economic impacts and inform blockchain adoption decisions by demonstrating investment efficiency benefits.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2024 The Author(s). Published by Elsevier. This is an open access article under the terms of the Creative Commons Attribution License (CC-BY 4.0), which permits unrestricted use, distribution and reproduction in any medium, provided the original work is properly cited. |
Keywords: | Blockchain technology; Investment efficiency; Corporate overinvestment |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Accounting & Finance Division (LUBS) (Leeds) |
Depositing User: | Symplectic Publications |
Date Deposited: | 11 Mar 2024 15:02 |
Last Modified: | 11 Mar 2024 15:02 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.econlet.2024.111603 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:210112 |