Cyber Risks and Initial Coin Offerings: Evidence from the World
23 Pages Posted: 11 Jun 2020
Date Written: May 18, 2020
This paper examines the impact of cyber risks on ventures’ initial coin offerings (ICOs) results. We match novel data on national cyber-security with hand collected characteristics of 1,654 ICO projects and discover that cyber risks are negatively associated ICO success. We further find that institutional quality, such as the protection of investor rights and the function of the legal system, attenuates this relationship.
Keywords: ICO, Cyber Risks, Institution Quality
JEL Classification: F0, G30, G32, G38
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