The Influence of National Economic and Financial Systems on the Performance of Initial Coin Offerings
Journal Title: Journal of Corporate Governance, Insurance, and Risk Management - Year 2024, Vol 11, Issue 2
Abstract
The rapid emergence of blockchain technology has facilitated the rise of Initial Coin Offerings (ICOs), offering an innovative approach to raising capital for startups and entrepreneurial ventures. Unlike conventional financing, where projects rely on internal resources or traditional external investments, ICOs enable firms to secure funding directly from the public through token sales. As this new form of crowdfunding gains momentum, the structure of national economic and financial systems has been identified as a critical factor influencing the success and performance of ICOs. Recent research has increasingly focused on comparing ICO markets with traditional corporate financing to better understand the dynamics at play. In this study, an econometric model was constructed to investigate how variations in a country’s financial and economic structures shape the fundraising outcomes of ICOs. A sample of 100 startups from diverse countries, including the United Kingdom, the United States, Austria, and South Africa, was analysed. The ordinary least squares (OLS) method was employed to estimate the model, defined as: Log(funds) = α + β1(fin) + β2(b) + β3(n) + β4(in) + . The variables represent key economic and financial indicators hypothesised to affect ICO performance, with rigorous statistical tests conducted using R Studio and Excel. Findings are expected to contribute to the growing body of literature by clarifying the extent to which national financial systems either facilitate or hinder the success of ICO fundraising campaigns. This research also provides valuable insights into the evolving role of financial innovation and regulation in the cryptocurrency ecosystem.
Authors and Affiliations
Lemsi Meriem, Jamel Eddine Henchiri
Investor Overreaction in the BIST Sustainability Index: An Empirical Analysis from 2014-2022
Recent emphasis on environmental stewardship by stakeholders has escalated demands for disclosures on social and environmental impacts from environmentally detrimental companies, underscoring the significance of sustaina...
Citizen Satisfaction and Influential Factors of E-Government Services During the COVID-19 Crisis: A Turkish Case Study
This study aimed to evaluate citizen satisfaction with e-Government (eGov) services in Turkey amid the COVID-19 pandemic and identify the key factors influencing satisfaction levels. Data were collected from a random sam...
Detection of Anomalies in Spot and Futures Markets and Their Directional Effects: An Analysis of the BIST 100 Index
The occurrence of market anomalies has been steadily increasing in contemporary stock markets, particularly within the context of the current economic climate. The volatility of stock markets, exacerbated by the recent i...
Modeling Vehicle Accident Risks in Auto Insurance: An Application of Generalized Linear Models in the Context of the National Insurance Company, Regional Directorate of Setif, Algeria
This study investigates risk distribution models in the context of auto insurance in emerging markets, with a focus on the National Insurance Company (SAA), regional directorate of Setif, Algeria. The research applies ge...
Sustainability Reporting in Local Governance: An Analysis of the İstanbul Environment Management Company (IEMC) Sustainability Report
The concept of sustainability encompasses a wide array of local government entities, including metropolitan, provincial, and district municipalities. In the current era, citizens residing within these jurisdictions asses...