Impact of Metaverse Investment on the Market Performance of Public Enterprise in China

Abstract

This paper provides evidence on the impact of Metaverse investment on the market performance of public enterprises in China. Our empirical analysis is based on event study and the data of 58 public firms which made Metaverse investment announcements between 2021 and 2022. The results show that Metaverse investment announcements have a significant positive impact on the market value of firms in the short term, but show a downward trend over time. Meanwhile, firms with larger size, stronger innovativeness and higher operation efficiency can obtain higher stoke price, resulting in more returns. Nevertheless, firms in different industries all get positive market feedback. Industry differences have no significant effect on the market performance of enterprise Metaverse investment.