The (Limited) Power of Blockchain Networks for Information Provision

【Author】 Franke, Benedikt; Fritz, Qi Gao; Stenzel, Andre

【Source】MANAGEMENT SCIENCE

【影响因子】6.172

【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

【发表时间】

【收录时间】2023-04-15

【文献类型】理论模型

【主题类别】

区块链应用-实体经济-企业管理