Topic: Technology Hype and Financial Markets
Time: 10:00 AM-12:00AM, June 20, 2025
Location: Room A1028, New Main Building
Guest: Prof. Arman Eshraghi holds the Chair of Finance and Investment at Cardiff Business School, UK. His academic research spans finance, accounting and management with interests including behavioural/corporate/sustainable finance and financial technology,He is Editor-in-Chief of international Review of Economics and Finance,Senior Editor of Finance Research Letters and Global Finance Journal, and currently guest-editing for the European Journal of Finance. He chairs the professorial committee of the British Accounting and Finance Association and leads the Cardiff Fintech Research Group as well as the Behavioural Finance Working Group in London. His research is published in Review of Financial Studies; Review of Finance; Accounting, Organizations and Society: Harvard Business Review; British Journal of Management etc.
Abstract:
We examine how investors react when firms disclose hyped emerging technologies.In a novel US setting, we match technologies disclosed in 8-K filings with corresponding stages of the widely used Gartner Hype Cycle. Findings show strong robust evidence for 'technology hype': investor short-term reactions are significantly positive - particularly to technologies as their peak of inflated expectations- but reverse later due to insider selling and firms overselling the hype. Firms with low analyst coverage, high retail ownership and information asymmetry, and those outside Nasdaq and the Silicon Valley experience stronger abnormal returns,consistent with investors searching for hidden gems