The effect of information asymmetry on investment behavior in cryptocurrency market

Minjung Park, Sangmi Chai

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

4 Scopus citations

Abstract

With the increase in the attention to cryptocurrency, studies on the factors affecting the price fluctuation of cryptocurrency have been actively conducted. Prior researches suggested that policy announcements (i.e., public information) related to cryptocurrency have been found to affect the price volatility in the market in particular. Privileged information, which is hard to be observable unlike public information published by the government or corporations, is hardly homogenously distributed to individual investors. However, it inevitably affects the price in any market. Therefore, this study aims to identify the information asymmetry, which is mainly formed by privileged information, in the cryptocurrency market. Moreover, this study examines whether investment sentiment, which mainly influences transaction behaviors of uninformed traders, has a significant effect on the cryptocurrency market as well. The results contribute to the understanding of the cryptocurrency market in a basis of the existing market theories.

Original languageEnglish
Title of host publicationProceedings of the 53rd Annual Hawaii International Conference on System Sciences, HICSS 2020
EditorsTung X. Bui
PublisherIEEE Computer Society
Pages4043-4052
Number of pages10
ISBN (Electronic)9780998133133
StatePublished - 2020
Event53rd Annual Hawaii International Conference on System Sciences, HICSS 2020 - Maui, United States
Duration: 7 Jan 202010 Jan 2020

Publication series

NameProceedings of the Annual Hawaii International Conference on System Sciences
Volume2020-January
ISSN (Print)1530-1605

Conference

Conference53rd Annual Hawaii International Conference on System Sciences, HICSS 2020
Country/TerritoryUnited States
CityMaui
Period7/01/2010/01/20

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