Identifying the Success Factors Affecting Entrepreneurial Finance using Initial Dex Offering

Document Type : Research Paper

Authors

1 Assistant professor, School of Entrepreneurship University of Tehran

2 Faculty of Entrepreneurship, Farshi Moghadam Street

Abstract

One of the best methods for entrepreneurial finance is Initial dex(decentralized exchange) offerings (IDO). Meanwhile, with the advantage of blockchain technology, the corporate financing of businesses through the initial dex offering emerged as a new phenomenon,.
In the present study, by examining 72 financing campaigns of IDO through online exchanges in the first half of 2019, identified the success factors of financing through IDO. The results of the study showed that low prices, low ratio of token offered to all existing token, and a large number of visitors to the exchange are the most vital factors affecting the IDO campaign.

Keywords

References

چیت ساز، احسان، قربانی حصاری، محمد، فیلی هشام. (1399). شناسایی عوامل مؤثر بر عدم موفقیت تأمین مالی جمعی مبتنی بر بلاک‌چین با استفاده از عرضه اولیه بهامُهر. توسعه کارآفرینی، 13(1)، 1-20. doi:https://doi.org/10.22059/JED.2020.297121.653257
 
Adhami, S., Giudici, G., & Martinazzi, S. (2018). Why do businesses go crypto? An empirical analysis of initial coin offerings. Journal of Economics and Business, 100, 64-75.
Allen, F., & Faulhaber, G. R. (1989). Signalling by underpricing in the IPO market. Journal of Financial Economics, 23(2), 303-323. Retrieved from http://www.sciencedirect.com/science/article/pii/0304405X89900603. doi:https://doi.org/10.1016/0304-405X(89)90060-3
Berg-Schlosser, D., Meur, G., Rihoux, B. & Ragin, C. (2009). Qualitative comparative analysis (qca) as an approach. In Configurational comparative methods: Qualitative comparative analysis (QCA) and related techniques (Vol. 51, pp. 1-18). SAGE Publications, Inc., https://www.doi.org/10.4135/9781452226569.  
Bourveau, T., De George, E. T., Ellahie, A., & Macciocchi, D. J. A. a. S. (2018). Initial coin offerings: Early evidence on the role of disclosure in the unregulated crypto market. In: May.
Cerchiello, P., Tasca, P., & Toma, A. M. (2019). ICO success drivers: a textual and statistical analysis. The Journal of Alternative Investments, 21(4), 13-25.
Chen, Y. (2018). Blockchain tokens and the potential democratization of entrepreneurship and innovation. Business Horizons, 61(4), 567-575.
Chitsaz, E., Etemadifard, S. M., Khoshsoroor, S., & Dapeng, L. (2020). Competition Shadow: Anchoring to Fear Versus Hope in Estimating Rivals in Competition. Advances in cognitive psychology, 16(3), 186–201. https://doi.org/10.5709/acp-0296-6.
Chitsaz, E., Qorbani, M., & Feili, H. (2020). Identifying the ICO success factors,  Journal of Entrepreneurship Development, 13(1), 1-20. doi:https://doi.org/10.22059/JED.2020.297121.653257
Di Pietro, F., Grilli, L., & Masciarelli, F. (2020). Talking about a revolution? Costly and costless signals and the role of innovativeness in equity crowdfunding. Journal of Small Business Management, 1-32. https://doi.org/10.1080/00472778.2020.1816435
Fisch, C. (2019). Initial coin offerings (ICOs) to finance new ventures. Journal of Business Venturing, 34(1), 1-22. doi:https://doi.org/10.1016/j.jbusvent.2018.09.007
Khoshsoroor, S., Dapeng, L., & Chitsaz, E. (2016). Propositions on resource allocation in teams. In Proceedings of the 2016 8th International Conference on Information Management and Engineering (pp. 57-61).
Khoshsoroor, S., Liang, D., Salami, G. E., & Chitsaz, E. (2019). Team cohesion: A double-edged sword in the relationship between rival estimation and escalation of commitment. Social Behavior and Personality: an international journal, 47(9), 1-12.
Liu, C., & Wang, H. (2019). Initial Coin Offerings: What Do We Know and What Are the Success Factors? In S. Goutte, K. Guesmi, & S. Saadi (Eds.), Cryptofinance and Mechanisms of Exchange: The Making of Virtual Currency (pp. 145-164). Cham: Springer International Publishing.
Lyandres, E., Palazzo, B., & Rabetti, D. (2019). Do tokens behave like securities? An anatomy of initial coin offerings. SSRN Electronic Journal.
Masiak, C., Block, J. H., Masiak, T., Neuenkirch, M., & Pielen, K. N. (2020). Initial coin offerings (ICOs): market cycles and relationship with bitcoin and ether. Small Business Economics, 55(4), 1113-1130.
Ragin, C. C. (2009). Redesigning social inquiry: Fuzzy sets and beyond: University of Chicago Press.
Seguin, P. J., & Smoller, M. M. (1997). Share price and mortality: An empirical evaluation of newly listed Nasdaq stocks. Journal of Financial Economics, 45(3), 333-363. doi:https://doi.org/10.1016/S0304-405X(97)00019-6
Spence, M. (1973). Job Market Signaling. The Quarterly Journal of Economics, 87(3), 355-374. Retrieved from www.jstor.org/stable/1882010. doi:10.2307/1882010
Stasik, A., & Wilczyńska, E. (2018). How do we study crowdfunding? An overview of methods and introduction to new research agenda. Journal of Management and Business Administration. Central Europe, 26(1), 49-78.
Woodside, A. G. (2013). Moving beyond multiple regression analysis to algorithms: Calling for adoption of a paradigm shift from symmetric to asymmetric thinking in data analysis and crafting theory. Journal of Business Research, 66(4), 463-472. doi:https://doi.org/10.1016/j.jbusres.2012.12.021
Journal of Entrepreneurship Development
Volume 14, Issue 2 - Serial Number 52
September 2021
Pages 221-240

Files

Share

How to cite

Statistics