Title: More than words: how press releases predict the performance of start-ups: evidence from the FinTech sector

Authors: Leonard Stuckenborg; Johannes Klein; Jens Leker

Addresses: Institute of Business Administration at the DEP 12, University of Muenster, Leonardo Campus 1, 48149 Muenster, Germany ' Institute of Business Administration at the DEP 12, University of Muenster, Leonardo Campus 1, 48149 Muenster, Germany ' Institute of Business Administration at the DEP 12, University of Muenster, Leonardo Campus 1, 48149 Muenster, Germany

Abstract: This study analyses the predictive power of press releases for the performance of FinTech start-ups. Using quantitative content analysis, we investigate a sample of 1570 press releases, issued between 2007 and 2016, and refer to the structural, linguistic and content elements of these business disclosures. Our results suggest that the sentiment, complexity, psychological distance and future-orientation of announcements are positively associated with the FinTech's performance, while a negative interaction is revealed for the frequency. With regard to the content categories, we provide evidence that news about financing rounds, partnerships, and business development are positively related to the venture growth.

Keywords: FinTech; quantitative content analysis; start-ups; business disclosures; press releases; sentiment; entrepreneurship; firm performance; venture growth; small business development.

DOI: 10.1504/IJEV.2021.117925

International Journal of Entrepreneurial Venturing, 2021 Vol.13 No.4, pp.346 - 381

Received: 10 Oct 2019
Accepted: 07 Oct 2020
Published online: 04 Oct 2021 *

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