【Author】
Franke, Benedikt; Fritz, Qi Gao; Stenzel, Andre
【Source】MANAGEMENT SCIENCE
【Abstract】We investigate the potential and limits of privacy-preserving corporate block -chain applications for information provision. We provide a theoretical model in which het-erogeneous firms choose between adopting a blockchain application or relying on traditional third-party intermediaries to inform the capital market. The blockchain's ability to generate information depends on each firm's data profile and all firms' endogenous adoption deci-sions. We show that blockchain technology can improve the information environment and outperform traditional institutions with firms' adoption decisions serving as a credible value signal and the application uncovering firm values by analyzing all participating firms' data. However, we also characterize an adverse mixed-adoption equilibrium in which neither of the two channels realizes its full potential and information provision declines not only for individual firms, but also in aggregate. The equilibrium is a warning sign that has broad implications for policymakers' regulatory effort and investors' assessment of corporate blockchain applications.
【Keywords】blockchain; disclosure; information provision; peer-to-peer network
【文献类型】Article; Early Access
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