Blockchain technology, macroeconomic uncertainty and investment efficiency

Abstract

Purpose

In addition to leading a new tide of global financial technology, blockchain delivers advantages in terms of risk control compared to traditional financial systems. By exploring the relationship between blockchain technology and macroeconomic uncertainty, this study aims to identify the hedge risk attribute of blockchain technology.

Design/methodology/approach

From a data set comprising 6,323 Chinese firms with A-shares listed on the Shenzhen and Shanghai Stock Exchanges in 2015–2018, the authors obtain the use of blockchain technology by listed companies on the basis of annual reports, news reports, search engines and prospectuses. These documents are then subjected to text analyses based on computer technology. Cross-sectional and propensity score matching analyses are used to ensure robustness.

Findings

The empirical results show that with an increase in macroeconomic uncertainty, blockchain technology can potentially enable companies to reduce their systemic risks and enhance their investment efficiency.

Originality/value

This study expands the literature on the application of blockchain technology, offers references for enterprises to address future risks based on specific macroeconomically uncertain environments and provides guidelines for governments to maintain financial market stability.

Citation

Chen, W., He, K. and Wang, L. (2023), "Blockchain technology, macroeconomic uncertainty and investment efficiency", International Journal of Emerging Markets, Vol. 18 No. 7, pp. 1493-1514. https://doi.org/10.1108/IJOEM-10-2020-1250