White knight in dark days? Supply chain finance firms, blockchain, and the COVID-19 pandemic

Paul, S.; Adhikari, A.; Bose, I.

Paul, S.; Adhikari, A.; Bose, I..

Information & Management ; 59(6):25, 2022.

Article in English | Web of Science | ID: covidwho-1977373

ABSTRACT

ABSTRACT

We investigate the impact of the announcement of the COVID-19 pandemic on the market value and trading volume of supply chain finance (SCF) firms. Using an event study, we observe a significant valuation loss and higher trading volume of SCF firms. However, blockchain-enabled SCF firms are protected from such valuation loss and volatility in trading. We find that higher research and development (R&D) and capital expenditures by firms prevent the loss. Moreover, the firm value of blockchain-enabled SCF firms is impacted by their membership in a blockchain consortium and progress in blockchain implementation. Investors' confidence in blockchain reduces the market uncertainty.

Keywords

Blockchain; COVID-19; Event study; Pandemic; Supply chain finance; Trading volume; Valuation; trade credit; market; risk; security; returns; event; announcements; initiatives; disruptions; performance; Computer Science; Information Science & Library Science; Business &; Economics

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Full text: Available Collection: Databases of international organizations Database: Web of Science Language: English Journal: Information & Management Year: 2022 Document Type: Article

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