The Crowdfunding of Altruism

نویسندگان

چکیده

This paper introduces a machine learning approach to quantify altruism from the linguistic style of textual documents. We apply our method central question in (social) entrepreneurship: How does impact entrepreneurial success? Specifically, we examine effects on crowdfunding outcomes Initial Coin Offerings (ICOs). The main result suggests that and ICO firm valuation are negatively related. We, then, explore several channels shed some light whether negative altruism-valuation relation is causal. Our findings suggest it not causes lower valuation; rather, low-quality entrepreneurs select into altruistic projects, while marginal effect high-quality actually positive. Altruism increases funding amount ICOs presence low asymmetric information, strong corporate governance.

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ژورنال

عنوان ژورنال: Journal of risk and financial management

سال: 2022

ISSN: ['1911-8074', '1911-8066']

DOI: https://doi.org/10.3390/jrfm15030138