Augmented reality and stock returns

Evans, K. P. ORCID: https://orcid.org/0000-0001-8854-2629, Hasan, I, Leung, W. S. and Song, W. 2025. Augmented reality and stock returns. Ferris, S., John, K. and Makhija, A., eds. Advances in Financial Economics, Vol. 26. The many faces of corporate finance, [Augmented reality and stock returns]. Emerald Group Publishing Ltd.,

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Abstract

This paper investigates the relationship between Augmented Reality (AR) technology and firm value. To resolve empirical challenges, we leverage our methodology on the staggered, national releases of Pokémon Go and apply a Difference-In-Differences (DID) framework to examine the perceived value of future benefits and growth opportunities of AR. Using a country-day panel of 43 national equity indexes, we show significant positive abnormal returns after the releases of the game, with the strongest impact within three days. Industry-level tests reveal a widespread, immediate recognition of the benefits of AR in firm value, whilst technology industries show relatively more persistent impacts. Our findings contribute to the ongoing debate on whether IT investment enhances value and offer an empirical justification for the substantial investments and commitments in developing AR and other related applications.

Item Type:	Book Section
Status:	In Press
Schools:	Schools > Business (Including Economics)
Subjects:	H Social Sciences > HG Finance
Publisher:	Emerald Group Publishing Ltd.
Last Modified:	13 Nov 2025 12:05
URI:	https://orca.cardiff.ac.uk/id/eprint/182363

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