Speaking to all: the economic impact of inclusive language in entrepreneurial finance

Korte inhoud:This study investigates the impact of inclusive language on fundraising outcomes in Initial Coin Offerings (ICOs), using a dataset of 1,202 ICO white papers issued between 2015 and 2021. Drawing on a lexicon of diversity, equity, and inclusion (DEI) terms published, on March 7, 2025, by The New York Times, we measure how inclusive language influences investor behavior. Our results show a positive relationship between inclusive language and funds raised, marginally decreasing at higher levels of inclusivity. This relationship is significantly stronger when the project shows signals of commitment to inclusion, such as the presence of gender- and ethnically diverse founding teams. The impact is also greater in left-leaning and English-speaking countries and in non-sin industries. Additional experimental and endogeneity-robustness tests support our findings. Overall, the study introduces inclusive language as a novel legitimacy signal in entrepreneurial finance and shows that its financial impact depends on alignment with organizational practices and institutional context.

Jaar van publicatie:2025

Trefwoorden:Economics

Toegankelijkheid:Open