Usage of blockchain technology and shareholder-oriented firm performance: Evidence from Indian listed firms

Abstract

Blockchain technology (BCT) is increasingly used to improve transparency and reduce information asymmetry within firms, yet evidence on how its usage affects shareholder-oriented firm performance (SFP) remains scarce, especially in emerging economies. This study examines whether usage of blockchain technology is associated with SFP among non-financial firms listed on the National Stock Exchange of India from 2016 to 2024. Usage is measured as a time varying binary indicator drawn from Compustat Global database and validated through textual analysis of annual reports. SFP is measured using the price to book value ratio, earnings per share, and the dividend payout ratio. A two-step system generalized method of moments estimator is used to address dynamic persistence and endogeneity, based on 3,501 firm year observations for 389 firms using BCT. The results show that usage of blockchain technology is positively associated with all the three measures. The association is significant at the 5 percent level for earnings per share and at the 10 percent level for the price to book value ratio and the dividend payout ratio. The study contributes to the fintech and corporate finance literature by providing multi-indicator evidence from an emerging market. It also offers implications for managers, investors, and policymakers who evaluate the financial returns to blockchain investment. The findings should be interpreted with caution given the modest significance levels and the binary measure of BCT usage.