Embracing Blockchain Applications in Fundamental Analysis for Investment Management
Audrey Li Chin Lim, Wong Wai Wai · Asia Proceedings of Social Sciences · 2018
The attributes of blockchain; efficiency in asset transfer, data accuracy, time-stamped transaction and transparency applications are postulated to have positive effects on fundamental analysis. Psychological factor such as herding may affects fundamental analysis which in turn affects investment decision making. Herding is not necessarily always deemed to be an irrational or negative factor. Investors who are affected by herding may still be able to invest in a rational manner and make a profit. With greater transparency in information and better data quality offered by Blockchain applications, herding behaviour by instititional investor could improve the stock valuation as well as the stock market fundamentals. These could be utilised by individual investors to make better and informed decision for stock picking. However, this is may only applicable to reputational herding.