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

Authors
  • Paul, Samit
  • Adhikari, Arnab
  • Bose, Indranil
Type
Published Article
Journal
Information & Management
Publisher
Elsevier BV
Publication Date
May 10, 2022
Volume
59
Issue
6
Pages
103661–103661
Identifiers
DOI: 10.1016/j.im.2022.103661
PMCID: PMC9088173
Source
PubMed Central
Keywords
Disciplines
  • Article
License
Unknown

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.

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