Huang, W, Vismara, S and Wei, X orcid.org/0000-0002-6064-7290 (2022) Confidence and capital raising. Journal of Corporate Finance, 77. 101900. ISSN 0929-1199
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.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2021 Elsevier B.V. All rights reserved. This is an author produced version of an article published in Journal of Corporate Finance. Uploaded in accordance with the publisher's self-archiving policy. |
Dates: |
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Institution: | The University of Leeds |
Academic Units: | The University of Leeds > Faculty of Business (Leeds) > Management Division (LUBS) (Leeds) > Management Division Decision Research (LUBS) |
Depositing User: | Symplectic Publications |
Date Deposited: | 27 Jan 2021 15:10 |
Last Modified: | 03 Jan 2023 11:41 |
Status: | Published |
Publisher: | Elsevier |
Identification Number: | 10.1016/j.jcorpfin.2021.101900 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:170444 |