Abstract

With the recent advances in immersive technologies, metaverse, a three-dimensional virtual world focused on social connection, has become one of the most burgeoning technological trends in the current digital economy. However, there is little empirical research measuring the economic value of metaverse applications. Employing the event study methodology, this study finds that the announcement of a metaverse-related business activity for financial services has positive effect on the market value of the firm, which is equivalent to market capitalization of $15 million dollars. Additional analysis shows that an announcement of the roll-out of a metaverse application has higher impact on firm value than an announcement of other types of metaverse-related business activities, including a new business partnership for metaverse business and participation in metaverse industry alliance. This study offers significant implications for the theory and practice concerning investment decisions on metaverse applications and strategic planning of metaverse-related business activities.

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