The (Limited) Power of Blockchain Networks for Information Provision

• 成果类型: Article
• 署名作者: Franke, Benedikt; Fritz, Qi Gao; Stenzel, Andre
• 署名单位: University of Wurzburg; University of Mannheim; Bank of Canada
• 刊物名称: MANAGEMENT SCIENCE
• ISSN/ISSBN: 0025-1909
• DOI: 10.1287/mnsc.2023.4718
• 发表日期: 2024
• 关键词: blockchain; disclosure; Information provision; peer-to-peer network

摘要

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.