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"Shareholder Value Implication of Blockchain Recordkeeping of Stock Ownership" - by Mr. Fang Zhongwen

Publishing Date: 07/01/2019      (Last Update: 07/01/2019)

Accounting & Law Seminar

Speaker:

Mr. Fang Zhongwen
PhD Candidate in Accounting
The University of Texas at Dallas
 

 

 

 

 

Event Details

DateFriday, 25 January 2019
Time10:30 a.m. — 12:00 noon
Venue1303, K.K. Leung Bldg

Abstract:

Blockchain technology offers a novel way of recordkeeping. The paper examines whether blockchain recordkeeping of stock ownership can be beneficial for shareholders. I explore an event associated with a legislation which allows Delaware-incorporated firms to maintain shareholder records using blockchain. Consistent with blockchain recordkeeping of stock ownership having the potential to curtail errors in proxy voting, I find a more favorable stock price reaction for firms whose proposal approval or rejection is more sensitive to proxy voting errors. Furthermore, the result is more pronounced for firms with a higher likelihood of proxy voting errors and firms with relatively poor performance. The above relations do not hold for non-Delaware-incorporated firms. The study is among the first to provide empirical evidence on shareholder value implication of blockchain recordkeeping.