Unraveling the effects of google search on volatility of cryptocurrencies

Cai, Zhao and Liu, Fei and Lim, Eric T. K. and 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.

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Abstract

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.

Item Type: Book Section
Keywords: Cryptocurrency; attention economy; Google search; return; risk
Schools/Departments: University of Nottingham Ningbo China > Faculty of Business > Nottingham University Business School China
Depositing User: Zhou, Elsie
Date Deposited: 01 Apr 2019 13:57
Last Modified: 01 Apr 2019 13:57
URI: http://eprints.nottingham.ac.uk/id/eprint/56410

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