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Conference Paper/Proceeding/Abstract 177 views

Tech Frenzy Fallout: When Hype Hits Hard and Stocks Crash

Pengfei Gao Orcid Logo, Arman Eshraghi Orcid Logo, Izidin El Kalak Orcid Logo, Jason Zezhong Xiao Orcid Logo

Tri-Uni Annual Conference (Newcastle University) 2022, 2nd FinTech Conference 2023, EAA 2023

Swansea University Author: Pengfei Gao Orcid Logo

Abstract

Inspired by the cyclical euphoria observed in technology sectors, similar to the dot-com and Bitcoin price bubbles, this research identifies how market hype surrounding new technologies can lead to significant financial instability. Specifically, we explore the ‘technomania’ phenomenon where initial...

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Published in: Tri-Uni Annual Conference (Newcastle University) 2022, 2nd FinTech Conference 2023, EAA 2023
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URI: https://cronfa.swan.ac.uk/Record/cronfa70713
first_indexed 2025-10-17T08:56:45Z
last_indexed 2025-12-19T04:25:40Z
id cronfa70713
recordtype SURis
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spelling 2025-12-17T15:28:04.3532836 v2 70713 2025-10-17 Tech Frenzy Fallout: When Hype Hits Hard and Stocks Crash bd00b4a498e1c45d25e0fcdab1838b26 0009-0008-7818-1231 Pengfei Gao Pengfei Gao true false 2025-10-17 CBAE Inspired by the cyclical euphoria observed in technology sectors, similar to the dot-com and Bitcoin price bubbles, this research identifies how market hype surrounding new technologies can lead to significant financial instability. Specifically, we explore the ‘technomania’ phenomenon where initial enthusiasm for emerging technologies results in exaggerated market expectations and subsequent corrections. Using textual analysis framed by the Gartner Hype Cycle, we evaluate the content of voluntary disclosures regarding various phases of hyped emerging technologies based on US 8-K filings from 2010 to 2019. Our robust empirical results indicate firms disclosing hyped emerging technologies can lead to an increased risk of a share price crash. This relationship is more pronounced for firms with high CEO overconfidence and uncertain future performance.In detail, disclosures during the initial excitement and disillusionment phases are associated with increased stock price crash risks, whereas disclosures during the maturity phase are associated with reduced risks. This study highlights the critical role of informed and rational responses to corporate disclosures in emerging technologies, urging a more measured investor approach to mitigate potential market disruptions. Conference Paper/Proceeding/Abstract Tri-Uni Annual Conference (Newcastle University) 2022, 2nd FinTech Conference 2023, EAA 2023 0 0 0 0001-01-01 COLLEGE NANME Management School COLLEGE CODE CBAE Swansea University Other 2025-12-17T15:28:04.3532836 2025-10-17T09:53:19.5365583 Faculty of Humanities and Social Sciences School of Management - Accounting and Finance Pengfei Gao 0009-0008-7818-1231 1 Arman Eshraghi 0000-0002-7406-1725 2 Izidin El Kalak 0000-0002-2992-4042 3 Jason Zezhong Xiao 0000-0003-0703-6447 4
title Tech Frenzy Fallout: When Hype Hits Hard and Stocks Crash
spellingShingle Tech Frenzy Fallout: When Hype Hits Hard and Stocks Crash
Pengfei Gao
title_short Tech Frenzy Fallout: When Hype Hits Hard and Stocks Crash
title_full Tech Frenzy Fallout: When Hype Hits Hard and Stocks Crash
title_fullStr Tech Frenzy Fallout: When Hype Hits Hard and Stocks Crash
title_full_unstemmed Tech Frenzy Fallout: When Hype Hits Hard and Stocks Crash
title_sort Tech Frenzy Fallout: When Hype Hits Hard and Stocks Crash
author_id_str_mv bd00b4a498e1c45d25e0fcdab1838b26
author_id_fullname_str_mv bd00b4a498e1c45d25e0fcdab1838b26_***_Pengfei Gao
author Pengfei Gao
author2 Pengfei Gao
Arman Eshraghi
Izidin El Kalak
Jason Zezhong Xiao
format Conference Paper/Proceeding/Abstract
container_title Tri-Uni Annual Conference (Newcastle University) 2022, 2nd FinTech Conference 2023, EAA 2023
institution Swansea University
college_str Faculty of Humanities and Social Sciences
hierarchytype
hierarchy_top_id facultyofhumanitiesandsocialsciences
hierarchy_top_title Faculty of Humanities and Social Sciences
hierarchy_parent_id facultyofhumanitiesandsocialsciences
hierarchy_parent_title Faculty of Humanities and Social Sciences
department_str School of Management - Accounting and Finance{{{_:::_}}}Faculty of Humanities and Social Sciences{{{_:::_}}}School of Management - Accounting and Finance
document_store_str 0
active_str 0
description Inspired by the cyclical euphoria observed in technology sectors, similar to the dot-com and Bitcoin price bubbles, this research identifies how market hype surrounding new technologies can lead to significant financial instability. Specifically, we explore the ‘technomania’ phenomenon where initial enthusiasm for emerging technologies results in exaggerated market expectations and subsequent corrections. Using textual analysis framed by the Gartner Hype Cycle, we evaluate the content of voluntary disclosures regarding various phases of hyped emerging technologies based on US 8-K filings from 2010 to 2019. Our robust empirical results indicate firms disclosing hyped emerging technologies can lead to an increased risk of a share price crash. This relationship is more pronounced for firms with high CEO overconfidence and uncertain future performance.In detail, disclosures during the initial excitement and disillusionment phases are associated with increased stock price crash risks, whereas disclosures during the maturity phase are associated with reduced risks. This study highlights the critical role of informed and rational responses to corporate disclosures in emerging technologies, urging a more measured investor approach to mitigate potential market disruptions.
published_date 0001-01-01T05:27:54Z
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score 11.098272

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