Ban, Boom, and Echo! Entrepreneurship and Initial Coin Offerings

Drawing on institutional theory, we investigate the entrepreneurship implications of regulatory spillover. Regulatory spillover occurs when regulations in one country affect either the expected regulatory approach in another country and/or the entrepreneurial actions in another country. In the context of Initial Coin Offerings (ICOs), we theorize that a regulatory ban in countries (i.e., China, South Korea) causes a short-term increase in the number of low-quality ICOs in other countries and a long-term drop in the number of ICOs albeit with a higher average quality. We introduce new large sample quarterly data on ICOs from 108 countries and show results consistent with our theory.

Bellavitis, C., Cumming, D. J., & Vanacker, T. (Forthcoming). Ban, Boom, and Echo! Entrepreneurship and Initial Coin Offerings. Entrepreneurship Theory and Practice.
https://doi.org/10.1177/1042258720940114.