Blockchain Applications : The Impact of a Firm's Choice of Financial Accounting System on Nonprofessional Investor Judgment and Decision-Making

Blockchain technologies have the potential to revolutionize business processes and financial reporting. This study explores how blockchain implementation impacts nonprofessional investor perceptions of transparency and investment decision-making. We conduct an online experiment with 236 nonprofessional investor participants and find that type of financial accounting system differentially affects various antecedents of nonprofessional investor’s intentions to buy or sell shares in a firm. Specifically, when firms employ a traditional accounting system, perceived signal credibility affects perceived investment quality. When firms employ a blockchain-based accounting system, transparency and perceived asymmetries of information influence perceptions of firm trustworthiness, both directly and indirectly. In all cases, perceived investment quality and trustworthiness influence intentions to buy/sell shares. This study provides initial evidence about the potential impact of blockchain technology on nonprofessional investor decision-making