The Risk of Cryptocurrency Payment Adoption
Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review
Author(s)
Detail(s)
Original language | English |
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Title of host publication | ICIS 2022 Proceedings |
Publication status | Published - Dec 2022 |
Externally published | Yes |
Conference
Title | 43rd International Conference on Information Systems (ICIS 2022) |
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Location | Bella Center Copenhagen |
Place | Denmark |
City | Copenhagen |
Period | 9 - 14 December 2022 |
Link(s)
Document Link | Links
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Permanent Link | https://scholars.cityu.edu.hk/en/publications/publication(0388ed1e-7c0a-4f12-ba98-a333c0a35daa).html |
Abstract
The rapid development of blockchain technology enables the application of cryptocurrency payment in real business practice. However, no research has examined the net effect of adopting such technologies on firm performance. Leveraging a unique research context that Booking.com starts cooperating with Travala.com, this study collects consumer reviews of the same hotels listed on Expedia and Booking.com in all states of the US and employs difference-in-differences designs. This study has three main findings. First, the adoption of cryptocurrency payment via Travala.com induces a net decrement in online sales on Booking.com. Second, the sales decrement is mainly driven by upscale hotels. Third, the sales decrement is severer when the cryptocurrency price is lower. These results are robust across hotels in all the states of USA and can be generalized using a later adoption of cryptocurrency payment. We interpret the mechanism as users’ negative associations and provide evidence by an event study analysis.
Citation Format(s)
The Risk of Cryptocurrency Payment Adoption. / Gao, Chaoyue; Gu, Bin; Liu, Xianwei et al.
ICIS 2022 Proceedings. 2022.
ICIS 2022 Proceedings. 2022.
Research output: Chapters, Conference Papers, Creative and Literary Works › RGC 32 - Refereed conference paper (with host publication) › peer-review