Signaling Value Through Gender Diversity: Evidence from Initial Coin Offerings

Guzmán, A.; Pinto-Gutiérrez, C.; Trujillo, M.-A. Signaling Value through Gender Diversity: Evidence from Initial Coin Offerings. Sustainability 2021, 13, 700. https://doi.org/10.3390/su13020700

19 Pages Posted: 6 Nov 2020 Last revised: 21 Jan 2021

See all articles by Alexander Guzmán

Alexander Guzmán

CESA School of Business

Christian A. Pinto-Gutierrez

University of Talca, Chile

Maria-Andrea Trujillo

CESA School of Business

Date Written: January 13, 2021

Abstract

We analyze women’s participation and the effects of team gender diversity on initial coin offering (ICO) success measured by the total funding amount raised in the actual ICO and the project’s long-term survival. Using a database featuring 875 initial coin offerings between 2017 and 2019, we find that women are significantly under-represented in ICO projects (on average, only 13% of team members are women). However, for projects that do have participation of women, we find that team gender diversity increases the total funding raised in the ICO. Moreover, when we separate team members into areas of expertise or roles in the project, we find that the presence of women in critical positions, such as being a founder or having financial or legal responsibilities, significantly reduces the likelihood of long-term coin failure. Our results are consistent with the notion that investors perceive women’s participation in leadership positions as a positive signal of desirable organizational practices that will translate into better performance. Our results are also consistent with the idea that having women, who abide by ethical values and are less prone to fraud, reduces the likelihood that informationally opaque ICOs turn out to be scams.

Keywords: Gender Diversity, Initial Coin Offerings, Blockchain, Entrepreneurship

JEL Classification: G3

Suggested Citation

Guzman, Alexander and Pinto-Gutierrez, Christian A. and Trujillo, María-Andrea, Signaling Value Through Gender Diversity: Evidence from Initial Coin Offerings (January 13, 2021). Guzmán, A.; Pinto-Gutiérrez, C.; Trujillo, M.-A. Signaling Value through Gender Diversity: Evidence from Initial Coin Offerings. Sustainability 2021, 13, 700. https://doi.org/10.3390/su13020700, Available at SSRN: https://ssrn.com/abstract=3695558 or http://dx.doi.org/10.2139/ssrn.3695558

Alexander Guzman

CESA School of Business ( email )

Bogota
Colombia

Christian A. Pinto-Gutierrez (Contact Author)

University of Talca, Chile ( email )

2 Norte 685
Talca, 3460000
Chile

María-Andrea Trujillo

CESA School of Business ( email )

Bogota
Colombia

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