Historical Determinants of Fintech Development: Evidence from Initial Coin Offerings

20 Pages Posted: 29 Sep 2020 Last revised: 20 Sep 2021

See all articles by Jiafu An

Jiafu An

University of Aberdeen

Wenxuan Hou

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

Xianda Liu

University of Edinburgh, Business School

Date Written: September 13, 2021

Abstract

This paper examines the impact of historical endowment on the Initial Coin Offering (ICO) market. Leveraging a sample of 1,617 hand collected ICOs over 2015-2019 and regressions models, we find that a country’s legal origin, disease environment, exposure to slave trade, and proximity to ancient trade routes are important determinants of the total amount of capital raised through ICOs. Further analyses suggest that the impact of historical endowment operates through legal and information sharing institutions. This finding suggests that traumatic shocks in the history plays an important role in shaping current Fintech development through long-run persistence of formal and informal institutions. This research highlights the importance to enlarge the scope of Fintech research and the importance to take institutions into account in relevant policy designs to promote financial development.

Keywords: ICO, history, finance, institutions

JEL Classification: G20; G21; G30; O10

Suggested Citation

An, Jiafu and Hou, Wenxuan and Hou, Wenxuan and Liu, Xianda, Historical Determinants of Fintech Development: Evidence from Initial Coin Offerings (September 13, 2021). Finance Research Letters, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3672882 or http://dx.doi.org/10.2139/ssrn.3672882

Jiafu An

University of Aberdeen ( email )

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

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

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 )

Xianda Liu

University of Edinburgh, Business School ( email )

Edinburgh
United Kingdom

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