ESG on the Chain: Unveiling the Impact of Different Blockchain Use Cases on Short-Term Stock Performance

Abstract

We examine stock market reactions to different corporate blockchain use cases, particularly those related to environmental, social, and governance (ESG) issues. The study utilizes the event study methodology and analyzes an international dataset including 679 announcements from 291 firms worldwide. The findings indicate significant positive shareholder reactions to announcements related to traceability-, finance- and trading-, as well as ESG-related blockchain initiatives. In fact, ESG-related announcements generate superior market reactions compared to non-ESG-related news. These results contribute to the understanding of factors influencing shareholder value in the context of corporate blockchain initiatives and emphasize the substantial impact of ESG-related blockchain use cases on stock performance.