The effect of blockchain related corporate name changes on stock prices : An investigation into the creation of cumulative abnormal returns following a blockchain related corporate name change

Sammanfattning: Investments in cryptocurrencies have generated extraordinary returns and the interest in cryptocurrencies and blockchain technology from the public, companies, investors, and news media has increased substantially in the past years. This has led certain corporations to change the strategic direction towards blockchain technology, as well as changing the corporate name to reflect an association and these name changes has created substantial increases in the price of that stock. Existing literature of corporate name changes has touched upon several aspects of the subject. However, no specific research connected to blockchain and cryptocurrencies has been conducted. The purpose of this research is therefore to investigate the effect of corporate name changes related to the terms blockchain or cryptocurrency on the price of stocks. A standard event study methodology was applied to determine if the name change creates abnormal returns. The method used has a quantitative approach to the research and relies on statistical testing of numerical data to reach a conclusion. An investigation of 11 firms was conducted to examine this topic. However, there were no firms that had included the term cryptocurrency in the corporate name. The findings from this research reveal positive and significant cumulative abnormal returns on the announcement date of a blockchain related corporate name change. Furthermore, over the full event window, a significant and positive cumulative abnormal return was observed. Thus, it can be concluded that name changes related to blockchain has a positive effect on the stock price and today's investors seem to perceive a corporate name change within the context of blockchain as positive.