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The Risk of Cryptocurrency Payment Adoption

Research output: Chapters, Conference Papers, Creative and Literary WorksRGC 32 - Refereed conference paper (with host publication)peer-review

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.
Original languageEnglish
Title of host publicationICIS 2022 Proceedings
Publication statusPublished - Dec 2022
Externally publishedYes
Event43rd International Conference on Information Systems (ICIS 2022): Digitization for the next generation - Bella Center Copenhagen, Copenhagen, Denmark
Duration: 9 Dec 202214 Dec 2022
Conference number: 43
https://icis2022.aisconferences.org/
https://aisel.aisnet.org/icis2022/

Conference

Conference43rd International Conference on Information Systems (ICIS 2022)
PlaceDenmark
CityCopenhagen
Period9/12/2214/12/22
Internet address

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