TY - JOUR
T1 - Ban, Boom, and Echo! Entrepreneurship and Initial Coin Offerings
AU - Bellavitis, Cristiano
AU - Cumming, Douglas
AU - Vanacker, Tom
N1 - Funding Information:
We acknowledge financial support by the Auckland University FDRF fund, grant number 3713248. An earlier version of this paper was presented at ACERE (2018, Sydney) where it was awarded the “best empirical paper” prize. We would also like to thank seminar participants at University of New South Wales, Macquarie University, Asia School of Business, ESSEC, Syracuse University, Chinese University of Hong Kong (Shenzhen). We are indebted to Kevin Wang, Hamid Sha and Charco Hui for their data collection and analysis support. The author(s) disclosed receipt of the following financial support for the research, authorship, and/or publication of this article: As mentioned in the acknowledgments, please note that funding was received: Auckland University FDRF fund, grant number 3713248.
Funding Information:
We acknowledge financial support by the Auckland University FDRF fund, grant number 3713248. An earlier version of this paper was presented at ACERE (2018, Sydney) where it was awarded the “best empirical paper” prize. We would also like to thank seminar participants at University of New South Wales, Macquarie University, Asia School of Business, ESSEC, Syracuse University, Chinese University of Hong Kong (Shenzhen). We are indebted to Kevin Wang, Hamid Sha and Charco Hui for their data collection and analysis support.
Publisher Copyright:
© The Author(s) 2020.
PY - 2022/9
Y1 - 2022/9
N2 - Regulatory spillovers occur when regulation in one country affects either the expected regulatory approach and/or entrepreneurial finance markets in other countries. Drawing on institutional theory, we investigate the global implications of a regulatory spillover on entrepreneurship. We argue that regulatory spillovers have both short- and long-term effects on the number and quality of entrepreneurial finance initiatives such as Initial Coin Offerings (ICOs). Based on a large-scale sample of ICOs in 108 countries, we find that a regulatory ban of ICOs in one country causes a short-term increase in the number of low-rated ICOs in other countries and a long-term drop in the number of ICOs, especially low-rated, which increases the average ICO rating. That is, a restrictive regulation triggered a process of increased market selection.
AB - Regulatory spillovers occur when regulation in one country affects either the expected regulatory approach and/or entrepreneurial finance markets in other countries. Drawing on institutional theory, we investigate the global implications of a regulatory spillover on entrepreneurship. We argue that regulatory spillovers have both short- and long-term effects on the number and quality of entrepreneurial finance initiatives such as Initial Coin Offerings (ICOs). Based on a large-scale sample of ICOs in 108 countries, we find that a regulatory ban of ICOs in one country causes a short-term increase in the number of low-rated ICOs in other countries and a long-term drop in the number of ICOs, especially low-rated, which increases the average ICO rating. That is, a restrictive regulation triggered a process of increased market selection.
KW - blockchain
KW - entrepreneurial finance
KW - entrepreneurship
KW - initial coin offering
KW - institutions
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U2 - 10.1177/1042258720940114
DO - 10.1177/1042258720940114
M3 - Article
AN - SCOPUS:85089786528
SN - 1042-2587
VL - 46
SP - 1136
EP - 1169
JO - Entrepreneurship Theory and Practice
JF - Entrepreneurship Theory and Practice
IS - 5
ER -