Improving Operational Efficiency through Quality 4.0 Tool: Blockchain Implementation and Subsequent Market Reaction

Purpose: This article aims to observe and measure how modern and innovative blockchain technology improves the data quality and transparency and thus affect the stock prices of publicly traded companies after announcing its implementation in their operations. Additionally, the objective is to compare the results with control group of non-adopters. Methodology/Approach: We selected 30 public companies across various sectors, obtained daily stock price data, identified peer companies, and employed an event study approach to examine the statistical impact of blockchain adoption announcements. Findings: A significant negative reaction (-0.4%) was observed in stock prices the day following a blockchain adoption announcement, but overall, the market response was unsystematic, indicating no consistent reaction in stock prices post-announcement. Research Limitation/Implication: The event study approach assumes that markets are always efficient. This methodology has some limitations because we live in a world that is not perfect, and stock prices do not necessarily fully reflect all available information. Originality/Value of paper: Blockchain implementation is a current and intriguing subject that has attracted limited scholarly research. Each new study contributes valuable insights to the understanding of how this innovative technology impacts corporate operations. Furthermore, this research endeavours to draw comparisons between companies that have announced their adoption of blockchain and their non-adopters counterparts.