Signaling in Equity Crowdfunding
Reads0
Chats0
TLDR
In this article, the authors examine the impact of firms' financial roadmaps (e.g., pre-planned exit strategies such as IPOs or acquisitions), external certification (awards, government grants and patents), internal governance (such as board structure), and risk factors ( such as amount of equity offered and the presence of disclaimers) on fundraising success.Abstract:
This paper presents an initial empirical examination of which start-up signals will induce small investors to commit financial resources in an equity crowdfunding context. We examine the impact of firms’ financial roadmaps (e.g., preplanned exit strategies such as IPOs or acquisitions), external certification (awards, government grants and patents), internal governance (such as board structure), and risk factors (such as amount of equity offered and the presence of disclaimers) on fundraising success. Our data highlight the importance of financial roadmaps and risk factors, as well as internal governance, for successful equity crowdfunding. External certification, by contrast, has little or no impact on success. We also discuss the implications for successful policy design.read more
Citations
More filters
Journal ArticleDOI
Reward-Based Crowdfunding Campaigns: Informational Value and Access to Venture Capital
TL;DR: This study suggests that the entrepreneur might forgo the opportunity of acquiring information via crowdfunding because the benefits of crowdfunding are insufficient to offset the risk of campaign failure.
Journal ArticleDOI
The emergence and effects of fake social information
TL;DR: This exploratory study assesses the effects of non-genuine social information on consumers' decision-making in the context of reward-based crowdfunding and reveals circumstances that foster this artificial manipulation of quality signals, including market and campaign characteristics.
Journal ArticleDOI
Financial return crowdfunding: literature review and bibliometric analysis
TL;DR: Zalan et al. as mentioned in this paper focused on crowdfunding that generates a financial return, i.e., peer-to-peer lending (P2P) and equity crowdfunding (EC), and looked into the documents published in the Tomson Reuters Web of Science.
Journal ArticleDOI
Entrepreneurial finance: Unifying themes and future directions
TL;DR: In this article, the authors discuss the growing importance of different sources of capital for entrepreneurs and emerging research trends pertinent to academics, practitioners, and policymakers, and explain common questions and suggest scope in future work for combining segments.
Journal ArticleDOI
Supply and demand on crowdlending platforms: connecting small and medium-sized enterprise borrowers and consumer investors
TL;DR: In this paper, the authors propose a double-switching behavior for consumer crowdlending to small and medium enterprises to match borrowers' supply of loan requests and customers' investment demand.
References
More filters
Journal ArticleDOI
The Strength of Weak Ties
TL;DR: In this paper, it is argued that the degree of overlap of two individuals' friendship networks varies directly with the strength of their tie to one another, and the impact of this principle on diffusion of influence and information, mobility opportunity, and community organization is explored.
Book ChapterDOI
The iron cage revisited institutional isomorphism and collective rationality in organizational fields
Paul DiMaggio,Walter W. Powell +1 more
TL;DR: In this paper, the authors argue that rational actors make their organizations increasingly similar as they try to change them, and describe three isomorphic processes-coercive, mimetic, and normative.
Book
General Theory of Employment, Interest and Money
TL;DR: In this article, a general theory of the rate of interest was proposed, and the subjective and objective factors of the propensity to consume and the multiplier were considered, as well as the psychological and business incentives to invest.
Book
The theory of the growth of the firm
TL;DR: In this article, the authors studied the role of large and small firms in a growing economy and found that large firms are more likely to acquire and merge smaller firms in order to increase their size.
Journal ArticleDOI
Job Market Signaling
TL;DR: In this paper, the authors present a model in which signaling is implicitly defined and explains its usefulness, in which the employer is not sure of the productive capabilities of an individual at the time he/she hires him.