Confidence and Capital Raising

Journal of Corporate Finance, Forthcoming

60 Pages Posted: 2 Aug 2019 Last revised: 2 Mar 2021

See all articles by Winifred Huang

Winifred Huang

University of Bath

Silvio Vismara

University of Bergamo

Xingjie Wei

University of Leeds - Faculty of Business

Date Written: December 07, 2020


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 (December 07, 2020). Journal of Corporate Finance, Forthcoming, Available at SSRN: or

Winifred Huang (Contact Author)

University of Bath ( email )

Claverton Down
Bath, BA2 7AY
United Kingdom


Silvio Vismara

University of Bergamo ( email )

Via dei Caniana
Bergamo, 24127
24127 (Fax)

HOME PAGE: http://

Xingjie Wei

University of Leeds - Faculty of Business ( email )

Leeds LS2 9JT
United Kingdom

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