Confidence and Capital Raising

44 Pages Posted: 2 Aug 2019

See all articles by Winifred Huang

Winifred Huang

University of Bath

Silvio Vismara

University of Bergamo

Xingjie Wei

University of Leeds - Leeds University Business School (LUBS)

Date Written: July 30, 2019


We investigate whether confidence of management teams, defined as the certainty about handling something, affects the capacity of firms to raise external capital. Drawing from psychology research, we run an experiment in which participants are asked to assess the confidence of management teams of 515 Initial Coin Offerings (ICOs) by appraising their pictures. Controlling for venture and offering characteristics, we find a positive association between confidence and the amount of fundraising. The results are robust to alternative estimation methods and to other visual traits, such as attractiveness and intelligence. Our study highlights the importance of utilizing images as a channel to communicate with prospective investors in alternative finance.

Keywords: Capital raising, confidence, initial coin offerings, ICOs, alternative finance

JEL Classification: G32, M13, O16

Suggested Citation

Huang, Winifred and Vismara, Silvio and Wei, Xingjie, Confidence and Capital Raising (July 30, 2019). Available at SSRN: or

Winifred Huang

University of Bath ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom


Silvio Vismara (Contact Author)

University of Bergamo ( email )

Via Marconi 5
24044 Dalmine, Bergamo
00390352052352 (Phone)
0039035562779 (Fax)

Xingjie Wei

University of Leeds - Leeds University Business School (LUBS) ( email )

Leeds LS2 9JT
United Kingdom

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