Blockchain technology, macroeconomic uncertainty and investment efficiency

Abstract

PurposeIn addition to leading a new tide of global financial technology, blockchain delivers advantages in terms of risk control compared to traditional financial systems. By exploring the relationship between blockchain technology and macroeconomic uncertainty, this study aims to identify the hedge risk attribute of blockchain technology.Design/methodology/approachFrom a data set comprising 6,323 Chinese firms with A-shares listed on the Shenzhen and Shanghai Stock Exchanges in 2015–2018, the authors obtain the use of blockchain technology by listed companies on the basis of annual reports, news reports, search engines and prospectuses. These documents are then subjected to text analyses based on computer technology. Cross-sectional and propensity score matching analyses are used to ensure robustness.FindingsThe empirical results show that with an increase in macroeconomic uncertainty, blockchain technology can potentially enable companies to reduce their systemic risks and enhance their investment efficiency.Originality/valueThis study expands the literature on the application of blockchain technology, offers references for enterprises to address future risks based on specific macroeconomically uncertain environments and provides guidelines for governments to maintain financial market stability.

Untangling operational performance implication of ambidextrous blockchain initiatives: an empirical investigation of Chinese manufacturers

“…Second, differing from prior studies which explore the influence of adopting blockchain (e.g. Chen et al. , 2021; Hasan et al.…”

“…The reason for exploring the influence of blockchain initiatives between 2015 and 2020 is that in China, blockchain did advance in this period. The starting year of 2015 is chosen as this year has seen the turning point for firm digitisation under the encouragement of the government (Chen et al. , 2021).…”

“…Second, differing from prior studies which explore the influence of adopting blockchain (e.g. Chen et al, 2021;Hasan et al, 2020;Pan et al, 2020) Third, the inclusion of two moderators offers a more comprehensive understanding on the effect of contingencies in blockchain value creation. Finally, from a managerial perspective, this research sheds light on the importance of adopting blockchainspecifically, implementing blockchain in an ambidextrous manner -and provides insights for firms regarding how to derive better outcomes given specific internal and external resource conditions.…”

“…We select China market as the main data source since China is a key player in the development of blockchain in the world (Kuo and Shyu, 2021). Thus, studying the phenomenon of Chinese firms provides certain representative significance (Chen et al. , 2021).…”

Economic policy uncertainty and corporate investment efficiency: Evidence from China - Based on panel data

“…Second, the economic policy uncertainty also forces firms to control their risk-taking level. Chen, He, and Wang [17] find that block-chain technology can potentially enable companies to reduce their systemic risks and enhance their investment efficiency with an increase in uncertainty. In addition, Liao, Ji, and Wang [18] show that firms tend to cope with higher EPU by improving internal control, which is beneficial to investment efficiency and sustainability development.…”