Year: 2025
Type: article
Abstract: With the emergence of blockchain technology, many firms have approached cryptocurrency by allowing their customers to use it as a form of payment. However, little research has examined firms’ acceptance of cryptocurrency, the unique strategies that have been undertaken, or the impact on firm-level outcomes. Drawing on signaling theory, the author applies the event study methodology to learn how firm value (i.e., stock price) is impacted by firms’ announcement of cryptocurrency acceptance. The author finds that, on average, firms have lost 2.73% in firm value as a result of announcing cryptocurrency acceptance. However, a moderation analysis reveals that firms that have chosen to accept Bitcoin (as opposed to focusing exclusively on alternative cryptocurrencies) and firms that have approached cryptocurrency acceptance in more recent years experience financial gains. The geographical location (i.e., domestic or international) of cryptocurrency acceptance is not found to have a moderating impact.
Source: Journal of Interactive Marketing
Author: Navid Bahmani
Institution: Rowan University
Language: English
Subfield: Information Systems
Field: Computer Science
Domain: Physical Sciences
Open Access status: hybrid
Estimated APC paid: $5,400
OpenAlex ID: W4414015189