Game of names: Blockchain premium in corporate names

Abstract

We examine stock price response around cryptocurrency‐related corporate name change announcements using an event study framework. We find that cryptocurrency‐related name changes generate larger gains in share price and volume than other corporate name changes. The valuation gains associated with cryptocurrency‐related name changes cannot be explained by standard asset pricing factors, firm and stock characteristics, industry specific shocks, or by the presence of outliers. These gains are higher when the announcements happen during periods of high sentiment for cryptocurrencies. There is evidence that shareholders with better access to private information about such name changes are able to front‐run other shareholders.