Author(s): Elena Grewal
Technology has facilitated dramatic changes in society during the three industrial revolutions. Capital is invested in a capitalist system when there is value, such as economic benefit. We want to see if the stock price of a company that uses a particular technology changes over time as the technology's life cycle progresses. Companies that primarily deal with augmented reality and are listed on Korea's KOSDAQ market were specifically filtered. We categorized these businesses based on the specific technologies that make up augmented reality. To compare stock returns to a benchmark, we employed the event study approach. As a result, portfolios of all companies adopting augmented reality exhibit higher returns than the benchmark during the "Peak of Inflated Expectations" stage. However, determining whether a result generated using one of the detailed technologies that make up augmented reality is higher or lower than the benchmark is difficult. There was no persistent pattern of cumulative abnormal returns (CAR) or buy-and-hold abnormal returns during the "Trough of Disillusionment" phase (BHAR). During this stage, however, there was a positive link between the overall sample's portfolio and each detailed technological firm's portfolio in terms of average BHAR and average abnormal returns.