Unveiling the dynamics of ICO underpricing: an analysis of regulatory changes and female leadership

Yang, An (2025) Unveiling the dynamics of ICO underpricing: an analysis of regulatory changes and female leadership. MPhil(R) thesis, University of Glasgow.

Abstract

Providing funding for innovative enterprises is a primary focus in entrepreneurial finance. Initial Coin Offering (ICO) constitutes a novel mechanism for raising funds for highly innovative enterprises utilizing Distributed Ledger Technology (DLT). The most common type of DLT is blockchain technology. In an ICO, companies raise funds by issuing tokens and selling them to a group of investors. Typically, these tokens are cryptocurrencies designed to serve as currency within the company's ecosystem. While ICOs share similarities with Initial Public Offerings (IPOs) and crowdfunding, there are distinctions. In contrast to IPOs, investors purchasing stocks gain equity, whereas investors acquiring tokens in ICOs do not obtain equity. Another distinguishing feature from crowdfunding is the use of DLT, which is essential for token issuance and constitutes the core of these enterprises. DLT, especially blockchain technology, represents a revolutionary and disruptive technological innovation. Therefore, providing funds for these enterprises is crucial in the field of entrepreneurial finance.

ICO, being a new financing method, faces incomplete regulatory frameworks across various countries and regions. This preliminary study aims to investigate the impact of ICO regulations on token depreciation and whether the presence of female leaders in companies amplifies or mitigates this impact.

Our multiple regression analysis, conducted on a sample of 377 ICOs from 2016 to 2020, indicates that ICO depreciation is reduced in the presence of ICO regulations. Additionally, when companies have female leaders, ICO depreciation becomes more severe. However, the interaction between regulation and female leadership mitigates ICO depreciation, meaning that female leaders exacerbate the impact of regulations on ICOs.

By integrating regulation, female leadership, and ICO depreciation, this study fills a gap in the research field. Furthermore, we provide relevant recommendations in the conclusion, offering guidance for establishing regulatory systems and ensuring fair pricing.

• Item Type: Thesis (MPhil(R))
• Qualification Level: Masters
• Subjects: H Social Sciences > HG Finance
• Colleges/Schools: College of Social Sciences > Adam Smith Business School
• Supervisor's Name: Gucbilmez, Dr. Ufuk and Vagenas-Nanos, Professor Evangelos
• Date of Award: 2025
• Depositing User: Theses Team
• Unique ID: glathesis:2025-84950
• Copyright: Copyright of this thesis is held by the author.
• Date Deposited: 07 May 2025 14:26
• Last Modified: 07 May 2025 14:27
• Thesis DOI: 10.5525/gla.thesis.84950
• URI: https://theses.gla.ac.uk/id/eprint/84950