Confidence and Capital Raising

Winifred Huang; Silvio Vismara; Xingjie Wei

doi:10.1016/j.jcorpfin.2021.101900

Confidence and Capital Raising

Winifred Huang, Silvio Vismara, Xingjie Wei

Research output: Contribution to journal › Article › peer-review

Abstract

We investigate whether the confidence of management teams, defined as the certainty about handling what one desires to do, affects the capacity of firms to raise external capital. Drawing on psychology research, we run an experiment in which participants are asked to assess the confidence of the 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 fundraising amount. The results are robust to alternative estimation methods and other visual traits such as attractiveness and intelligence. Our study highlights the importance of using images as a channel to communicate with prospective investors in alternative finance.

Original language	English
Article number	101900
Journal	Journal of Corporate Finance
Early online date	21 Jan 2021
DOIs	https://doi.org/10.1016/j.jcorpfin.2021.101900
Publication status	E-pub ahead of print - 21 Jan 2021

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The evolution of financing environment for small and medium-size entrepreneurs (SMEs) and private firms: where did the money come from and go to in the 21st century? (Part II)
Huang, W.
13/12/18 → 31/03/19
Project: Research-related funding

Cite this

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title = "Confidence and Capital Raising",

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Confidence and Capital Raising

Abstract

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Embargoed Document

The evolution of financing environment for small and medium-size entrepreneurs (SMEs) and private firms: where did the money come from and go to in the 21st century? (Part II)

Cite this