Initial Coin Offerings and Entrepreneurial Finance: <i>The Role of Founders’ Characteristics</i>

An, Jiafu; Duan, Tinghua; Hou, Wenxuan; Xu, Xinyu

doi:10.3905/jai.2019.1.068

Cited by 66 publications

(37 citation statements)

References 40 publications

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“…As we hypothesise in Section 2.2, the relationship between the tightening of party discipline and firm value depends not only on firm status (state-owned versus private), but also on the quality of regional institutions (An et al, 2019a). If the 2015 party-discipline revision has a positive impact on firm value through improving the quality of institutions, then firms operating in an environment with better institutions (i.e., absence of political favouritism, no delays in dealing with government entities, etc.)…”

Section: Heterogeneous Analyses Based On Provincial Variations In Insmentioning

confidence: 88%

Do checks on bureaucrats improve firm value? Evidence from a natural experiment

Armitage

Hou

et al. 2020

Accounting & Finance

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This paper studies the impact on firm value of tighter checks on bureaucrats’ behaviour. We use as a natural experiment the revision in 2015 by the Communist Party of China (CPC) of its regulations on disciplinary actions. We document a positive and substantial market reaction following this unexpected policy change that tightened and formalised constraints on bureaucrats’ misconduct. The impact is less pronounced for firms with state ownership, firms having CEOs or directors with CPC membership, and firms that operate in provinces with better institutional quality. The subsequent revision in 2018 that enforced political obedience is not associated with a positive market reaction.

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Section: Heterogeneous Analyses Based On Provincial Variations In Insmentioning

confidence: 88%

Do checks on bureaucrats improve firm value? Evidence from a natural experiment

Armitage

Hou

et al. 2020

Accounting & Finance

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“…Boreiko and Vidusso (2019) focus on the role of intermediaries behind successful token sales. An et al (2019) test the effects of the disclosure of founder background information and the founding team's collective human capital on ICO outcomes. Drobetz et al (2019) examine the extent to which the ICO market is driven by investor sentiment, whether crypto-related or linked to the general capital market.…”

Section: Literature Reviewmentioning

confidence: 99%

Serial and large investors in initial coin offerings

Boreiko

Risteski

2020

Small Bus Econ

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This study is the first to provide systematic evidence regarding investor behaviour in initial coin offerings (ICOs), their investment patterns and their role in the success of campaigns. Using hand-collected data on 472 public token sales over the period of 2013-2017, we advance the ICO literature by demonstrating that some contributors often invest in more than one campaign, and such serial investors contribute earlier. However, they are not more informed and fail to pick betterquality ICOs. Only large serial investors invest more in campaigns that raise more funds, attract more contributors, are more likely to reach their hard caps, and distribute tokens that are listed on crypto exchange. Our findings raise the question of whether regulatory or industry self-regulation agreements on information provision measures are needed to protect smaller retail ICO investors that exhibit naïve reinforcement learning behaviour.

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“…Comparing ICOs with other financing or investment alternatives, Rhue (2018) states that there is a wide range of legal and financial requirements to raise funds using the IPO, while the ICO process is relatively easier. As for the availability of ICO, An, Duan, Hou, and Xu (2019) point out that due to their virtuality, low level of regulation, ICO allows investing and using ICOs to finance or invest for a wider range of investors and companies for which traditional investment or financing methods could not be available. Although ICO provides opportunities to attract funding for companies or invest for investors that do not meet often fairly high requirements when choosing other alternatives, Fisch (2018) point out that due to their high-tech nature, ICOs are generally only available to companies using blockchain technologies.…”

Section: Entrepreneurship and Sustainability Issuesmentioning

confidence: 99%

Initial Coin Offerings (ICOs): benefits, risks and success measures

Šapkauskienė¹,

Višinskaitė²

2020

JESI

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The initial coin offering is usually defined as a new, innovative way of raising funds used by organizations, companies, or entrepreneurs, attracting funds through a cryptographic exchange in exchange for the coins that can be sold, used for future products or services purchase or profit. This article provides an overview of the evolving ICO market and indicates the main advantages and risks of the ICO. It is pointed out that ICO offers many advantages, such as high liquidity, return on investment, availability, fast capital raising process, minimization of capital raising costs. Nonetheless, the noticeable benefits of ICOs are often available only when companies or investors agree to take considerable risks, caused by the information asymmetry, lack of investor protection, proper regulation and methodical guidance both for investors and entrepreneurs. Considering the novelty, volatility, emerging risks, growing popularity of the ICO market and the lack of research in the scientific literature, it is important to investigate the factors that influence the success of the ICO, which is usually defined as the amount of funds attracted, listing of the coins, return on investment, market capitalization or the duration of the ICO.

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Initial Coin Offerings and Entrepreneurial Finance: The Role of Founders’ Characteristics

Cited by 66 publications

References 40 publications

Do checks on bureaucrats improve firm value? Evidence from a natural experiment

Do checks on bureaucrats improve firm value? Evidence from a natural experiment

Serial and large investors in initial coin offerings

Initial Coin Offerings (ICOs): benefits, risks and success measures

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