Corporate Governance and Blockchains

By David Yermack. 2017

950 citations recorded by the source corpus.

Blockchains represent a novel application of cryptography and information technology to ag-eold problems of financial record-keeping, and they may lead to far-reaching changes in corporate governance. Many major players in the financial industry have began to invest in this new technology, and stock exchanges have proposed using blockchains as a new method for trading corporate equities and tracking their ownership. This essay evaluates the potential implications of these changes for managers, institutional investors, small shareholders, auditors, and other parties involved in corporate governance. The lower cost, greater liquidity, more accurate record-keeping, and transparency of ownership offered by blockchains may significantly upend the balance of power among these cohorts.

Subfields: Accounting, Information Systems, Management Information Systems

View Paper: https://www.semanticscholar.org/paper/7b46b14147af27db0bf3e2dd832b20ed0e27a692

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Citations in the corpus

Blockchain in the built environment and construction industry: A systematic review, conceptual models and practical use cases (2019, background): “Proof-ofOwnership and Rights Ownership, IPR and rights can be recorded for many types of assets from vehicles to buildings to bonds (Yermack, 2017) and can be made explicit for shared BIM models leading to better trust between parties (Kinnaird and Geipel, 2018).”
Institutional investors and post-ICO performance: an empirical analysis of investor returns in initial coin offerings (ICOs) (2020, neutral): “Blockchain technology is a disruptive technological innovation with vast potential (e.g., Yermack, 2017).”
Survey on blockchain based smart contracts: Applications, opportunities and challenges (2021, background): “35 Application Key challenges Blockchain features Key benefits D ec en tr al iz at io n Fo rg e re si st an ce Tr an sp ar en cy A ut on om ou s ex ec ut io n A cc ur ac y Energy Trading: [218], [219], [221], [222] • Decentralized scalable service availability • Peer to peer operation • Accurate agr”
Toward Blockchain-Based Accounting and Assurance (2017, background): “…property, identity authentication, leasing, and government service 2 (Atzori 2015; Cointelegraph 2015; De Meijer 2016; Liebenau and Elaluf-Calderwood 2016; Peters and Panayi 2016; Swan 2015a; Trautman 2016; Wall Street Journal [ WSJ ] 2015; Yermack 2017; Zyskind, Nathan, and Pentland 2015).”
Blockchain technology in agri-food value chain management: A synthesis of applications, challenges and future research directions (2019, background): “Badzar [65] emphasizes that openness and unchangeable attributes of blockchain ensure high transparency, stability and reliability of agri-food value chain, as well as provide liquidity, more accurate record-keeping and high transparency of ownership [66].”
Blockchain Disruption and Smart Contracts (2018, neutral): “6 Yermack (2017) evaluates the potential impacts of the technology on corporate c ong @ governance.”
Cryptocurrency market contagion: Market uncertainty, market complexity, and dynamic portfolios (2019, background): “Along these lines, some of the implications of blockchain technology on corporate governance are presented in Yermack (2017).”
Decentralized Mining in Centralized Pools (2019, background): “Yermack (2017) evaluates potential impacts of the blockchain technology on corporate governance.”
The FinTech Opportunity (2016, positive): “FinTech innovations are happening and are likely to have an impact in many areas of finance, as discussed by Yermack (2015) in the case of corporate governance.”
Entrepreneurial Finance and Moral Hazard: Evidence from Token Offerings (2020, background): “Smart contracts are automated protocols that define all important transaction parameters (Yermack, 2017).”
Sex, Drugs, and Bitcoin: How Much Illegal Activity Is Financed through Cryptocurrencies? (2019, background): “Possible benefits to securities markets include reducing equities settlement times and costs (Malinova and Park 2016; Khapko and Zoican 2016), increasing ownership transparency leading to improved governance (Yermack 2017), and providing a payments system with the network externality benefits of a m”
System architecture for blockchain based transparency of supply chain social sustainability (2020, background): “However, the traceability and transparency enabled by blockchain may shift the balance of power in traditional governance structures [30].”