Unraveling the Effects of Google Search on Volatility of Cryptocurrencies

Zhao Cai , Albert Fei Liu, Eric T. K. Lim, Chee-Wee Tan, Zhiqiang Zheng

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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.
Original languageEnglish
Title of host publicationProceedings of the 39th International Conference on Information Systems (ICIS)
Number of pages9
Place of PublicationAtlanta, GA
PublisherAssociation for Information Systems. AIS Electronic Library (AISeL)
Publication date2018
ISBN (Electronic)9780996683173
Publication statusPublished - 2018
EventThe 39th International Conference on Information Systems. ICIS 2018: Bridging the Internet of People, Data, and Things - San Francisco, United States
Duration: 13 Dec 201816 Dec 2018
Conference number: 39
https://icis2018.aisconferences.org/

Conference

ConferenceThe 39th International Conference on Information Systems. ICIS 2018
Number39
CountryUnited States
CitySan Francisco
Period13/12/201816/12/2018
Internet address
SeriesProceedings of the International Conference on Information Systems
ISSN0000-0033

Keywords

  • Cryptocurrency
  • Attention economy
  • Google search
  • Return
  • Risk

Cite this

Cai , Z., Liu, A. F., Lim, E. T. K., Tan, C-W., & Zheng, Z. (2018). Unraveling the Effects of Google Search on Volatility of Cryptocurrencies. In Proceedings of the 39th International Conference on Information Systems (ICIS) Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). Proceedings of the International Conference on Information Systems
Cai , Zhao ; Liu, Albert Fei ; Lim, Eric T. K. ; Tan, Chee-Wee ; Zheng, Zhiqiang . / Unraveling the Effects of Google Search on Volatility of Cryptocurrencies. Proceedings of the 39th International Conference on Information Systems (ICIS). Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2018. (Proceedings of the International Conference on Information Systems).
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title = "Unraveling the Effects of Google Search on Volatility of Cryptocurrencies",
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.",
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author = "Zhao Cai and Liu, {Albert Fei} and Lim, {Eric T. K.} and Chee-Wee Tan and Zhiqiang Zheng",
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Cai , Z, Liu, AF, Lim, ETK, Tan, C-W & Zheng, Z 2018, Unraveling the Effects of Google Search on Volatility of Cryptocurrencies. in Proceedings of the 39th International Conference on Information Systems (ICIS). Association for Information Systems. AIS Electronic Library (AISeL), Atlanta, GA, Proceedings of the International Conference on Information Systems, San Francisco, United States, 13/12/2018.

Unraveling the Effects of Google Search on Volatility of Cryptocurrencies. / Cai , Zhao ; Liu, Albert Fei; Lim, Eric T. K.; Tan, Chee-Wee; Zheng, Zhiqiang .

Proceedings of the 39th International Conference on Information Systems (ICIS). Atlanta, GA : Association for Information Systems. AIS Electronic Library (AISeL), 2018. (Proceedings of the International Conference on Information Systems).

Research output: Chapter in Book/Report/Conference proceedingArticle in proceedingsResearchpeer-review

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AU - Liu, Albert Fei

AU - Lim, Eric T. K.

AU - Tan, Chee-Wee

AU - Zheng, Zhiqiang

PY - 2018

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AB - 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.

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KW - Attention economy

KW - Google search

KW - Return

KW - Risk

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KW - Attention economy

KW - Google search

KW - Return

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Cai Z, Liu AF, Lim ETK, Tan C-W, Zheng Z. Unraveling the Effects of Google Search on Volatility of Cryptocurrencies. In Proceedings of the 39th International Conference on Information Systems (ICIS). Atlanta, GA: Association for Information Systems. AIS Electronic Library (AISeL). 2018. (Proceedings of the International Conference on Information Systems).