Absolute blockchain strength? An empirical examination of the emerging blockchain ABS market in China


Yanfeng Zheng

Blockchain or distributed ledger technology has become a buzzword during the past decade. Its potential to challenge current business practices such as financial transactions have been touted or criticized by numerous researchers and practitioners. Nonetheless, existing literatures thus far has virtually zero empirical evidence to demonstrate how the existing financial services benefit from such a new technology. We exploit the emerging asset-backed security (ABS) market with approximately 7,000 ABS products issued between 2015 and 2020 to examine the impact of adopting Blockchain on the financial transactions. Our study will control potential endogeneity with coarsen exact matching (CEM) to carefully examine whether blockchain-based ABS products enjoy any premium than those non-blockchain-based ones. Moreover, we will investigate the specific channels or boundary conditions of the premium effect brought by the adoption of the blockchain technology to ABS market. Our study will make a timely and solid contribution to the existing debate or hype around the blockchain technology and its implications.

Principal Investigator (PI):  Yanfeng Zheng, Department of Management

This project is funded by the HKUST IEMS Research Grants 2021.  

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