Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/258363 
Year of Publication: 
2022
Citation: 
[Journal:] Risks [ISSN:] 2227-9091 [Volume:] 10 [Issue:] 3 [Article No.:] 53 [Publisher:] MDPI [Place:] Basel [Year:] 2022 [Pages:] 1-17
Publisher: 
MDPI, Basel
Abstract: 
This paper aimed to assess the effect of the cryptocurrency market on firms' market value, especially on the sectoral level, in Africa. To reach the study's main goal, the authors adopted the Panel-Corrected Standard Errors (PCSEs) and Panel Double-Clustered Standard Errors (PDCSEs). Using firm-level data, the results of this study can be summarized as follows: (a) The cryptocurrency market hurts the firm market value in Africa. (b) The firms operating across different sectors respond disproportionally to the cryptocurrency market. For instance, the sectors that offer low returns in Africa (industrial, energy, financial) negatively respond to the cryptocurrency market, while the sectors that offer high returns (real estate and information technology) are not significantly affected. (c) The cryptocurrency market has a perverse effect on less experienced and highly indebted firms. (d) The consistent policies of governments to ban cryptocurrency do not work efficiently.
Subjects: 
Africa
cryptocurrency
market cap
sector
JEL: 
B26
G11
G32
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
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