Limitations of imitation: Lessons from another Bitcoin copycat

【Author】 Cahill, Daniel; Liu, Zhangxin (Frank)

【Source】JOURNAL OF CORPORATE FINANCE

【影响因子】5.107

【Abstract】We find strong evidence that imitation to the leader in an uncertain environment provides shortterm early success without enhancing long-term survival. Using a unique setting in cryptocurrencies where Bitcoin has been the centre focus, we define copycats as cryptocurrencies that have a name similar to Bitcoin. Our results show copycats earn higher returns in the first day and first week of trading but have a lower survival rate comparing to non-copycats and are robust to alternative definitions of copycat and an instrumental variable. Our results highlight that in an uncertain market created by a novel technology, the name of an organization may be a strong signal to investors when other signals are unclear.

【Keywords】Copycats; New ventures; Imitation; Cryptocurrency; Blockchain

【发表时间】2021 AUG

【收录时间】2022-01-02

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