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

Journal of Alternative Investments, Vol. 21, No. 4, 2019, https://jai.pm-research.com/content/21/4/26

Posted: 19 Jan 2019

See all articles by Jiafu An

Jiafu An

University of Aberdeen

Tinghua Duan

IESEG School of Management

Wenxuan Hou

University of Edinburgh - Business School; University of Edinburgh - Business School; Shanghai Lixin University of Accounting and Finance

Xinyu Xu

University of Edinburgh - Edinburgh Business School

Date Written: December 28, 2018

Abstract

Initial coin offerings (ICOs) are a new financing instrument that allows start-ups to sell blockchain-based digital tokens for capital on the internet. This study tests the effects of disclosure of founders’ background information and founding team’s collective human capital on ICO outcomes. We find both the disclosure of founders’ information and founding team’s human capital are associated with better ICO outcomes measured either by the total amount raised or the speed of fundraising. Our results thus highlight the importance of information disclosure and human capital in entrepreneurial finance.

Keywords: Initial coin offerings (ICOs); founder characteristics; entrepreneurial finance; human capital

JEL Classification: G1; G3; G4

Suggested Citation

An, Jiafu and Duan, Tinghua and Hou, Wenxuan and Hou, Wenxuan and Xu, Xinyu, Initial Coin Offerings and Entrepreneurial Finance: The Role of Founders’ Characteristics (December 28, 2018). Journal of Alternative Investments, Vol. 21, No. 4, 2019, https://jai.pm-research.com/content/21/4/26, Available at SSRN: https://ssrn.com/abstract=3312918

Jiafu An

University of Aberdeen ( email )

King's College
Aberdeen
Aberdeen, AB24 3FX
United Kingdom

HOME PAGE: http://www.jiafuan.net

Tinghua Duan

IESEG School of Management ( email )

Socle de la Grande Arche
1 Parvis de la Defense
Puteaux, Paris 92800
France

Wenxuan Hou (Contact Author)

University of Edinburgh - Business School ( email )

University of Edinburgh
29 Buccleuch Place
Edinburgh, Scotland EH8 9JS
United Kingdom

HOME PAGE: http://www.wenxuanhou.com

University of Edinburgh - Business School ( email )

University of Edinburgh
29 Buccleuch Place
Edinburgh, Scotland EH8 9JS
United Kingdom

HOME PAGE: http://www.wenxuanhou.com

Shanghai Lixin University of Accounting and Finance ( email )

Xinyu Xu

University of Edinburgh - Edinburgh Business School

29 Buccleuch Pl
Edinburgh, Scotland EH8 9JS
United Kingdom

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