Harnessing Blockchain Technology In Fundamental Analysis For Investment Decision Making

Abstract

The transformative roles of Blockchain technology in the financial sectors are causing revolutions and disruptions to the traditional financial system. A few international leading Stock Exchanges have been preparing and are readying themselves urgently to embrace this new technology that is likely to have colossal effect in the commercial world. However, Malaysia is not able to capitalise and adopt this technology in such short space of time in the interest of its investors due to its lack of the applicability comprehension of this newest technology’s capabilities. Moreover, limited research has been conducted to delineate the importance of this Blockchain technology in relation to the fundamental analysis namely the fibers pertaining to investment decision making amongst the investors in general. The paramount objective of this study is to highlight the impacts of this revolutionary Blockchain technology, namely its super efficiency in asset transfer, data accuracy, irreversible transaction and transparency in fundamental analysis that could significantly implant greater confidence amongst potential investors. With greater availability and access of and to data and information transparency, investment decision making can be elevated to a higher platform which could stimulate market liquidity. However, not all investors conduct their own fundamental analysis when making investment decision, they may still be susceptible to psychological bias such as herding.