Unraveling the effects of google search on volatility of cryptocurrencies

Although cryptocurrencies have garnered enormous public attention in recent times, extensive fluctuations in their prices have deterred prospective investors. Due to the absence of a centralized valuation authority, the credibility of cryptocurrencies as a viable investment vehicle remains elusiv...

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Main Authors: Cai, Zhao, Liu, Fei, Lim, Eric T. K., Tan, Chee-Wee, Zheng, Zhiqiang
Format: Book Section
Language:English
Published: Association for Information Systems 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/56410/
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author Cai, Zhao
Liu, Fei
Lim, Eric T. K.
Tan, Chee-Wee
Zheng, Zhiqiang
author_facet Cai, Zhao
Liu, Fei
Lim, Eric T. K.
Tan, Chee-Wee
Zheng, Zhiqiang
author_sort Cai, Zhao
building Nottingham Research Data Repository
collection Online Access
description Although cryptocurrencies have garnered enormous public attention in recent times, extensive fluctuations in their prices have deterred prospective investors. Due to the absence of a centralized valuation authority, the credibility of cryptocurrencies as a viable investment vehicle remains elusive. Building on attention theory, this study posits that prospective investors of cryptocurrencies are likely to search online for information before deciding whether to make a commitment. We hence investigate the effects of Google search on the return and risk of 268 cryptocurrencies over 181 trading days. Results indicate that the Google Search Volume Index (SVI) of a given cryptocurrency exerts significant and positive impact on its price and turnover.
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spelling nottingham-564102019-04-01T13:57:14Z https://eprints.nottingham.ac.uk/56410/ Unraveling the effects of google search on volatility of cryptocurrencies Cai, Zhao Liu, Fei Lim, Eric T. K. Tan, Chee-Wee Zheng, Zhiqiang Although cryptocurrencies have garnered enormous public attention in recent times, extensive fluctuations in their prices have deterred prospective investors. Due to the absence of a centralized valuation authority, the credibility of cryptocurrencies as a viable investment vehicle remains elusive. Building on attention theory, this study posits that prospective investors of cryptocurrencies are likely to search online for information before deciding whether to make a commitment. We hence investigate the effects of Google search on the return and risk of 268 cryptocurrencies over 181 trading days. Results indicate that the Google Search Volume Index (SVI) of a given cryptocurrency exerts significant and positive impact on its price and turnover. Association for Information Systems 2018-12-16 Book Section PeerReviewed application/pdf en https://eprints.nottingham.ac.uk/56410/1/Unraveling%20the%20Effects%20of%20Google%20Search%20on%20Volatility%20of%20Cryptocu.pdf Cai, Zhao, Liu, Fei, Lim, Eric T. K., Tan, Chee-Wee and Zheng, Zhiqiang (2018) Unraveling the effects of google search on volatility of cryptocurrencies. In: 39th International Conference on Information Systems (ICIS 2018). Association for Information Systems. Cryptocurrency; attention economy; Google search; return; risk https://aisel.aisnet.org/icis2018/crypto/Presentations/13/
spellingShingle Cryptocurrency; attention economy; Google search; return; risk
Cai, Zhao
Liu, Fei
Lim, Eric T. K.
Tan, Chee-Wee
Zheng, Zhiqiang
Unraveling the effects of google search on volatility of cryptocurrencies
title Unraveling the effects of google search on volatility of cryptocurrencies
title_full Unraveling the effects of google search on volatility of cryptocurrencies
title_fullStr Unraveling the effects of google search on volatility of cryptocurrencies
title_full_unstemmed Unraveling the effects of google search on volatility of cryptocurrencies
title_short Unraveling the effects of google search on volatility of cryptocurrencies
title_sort unraveling the effects of google search on volatility of cryptocurrencies
topic Cryptocurrency; attention economy; Google search; return; risk
url https://eprints.nottingham.ac.uk/56410/
https://eprints.nottingham.ac.uk/56410/