Market Mechanisms and Funding Dynamics in Equity Crowdfunding

Hornuf, Lars; Schwienbacher, Armin

doi:10.1016/j.jcorpfin.2017.08.009

アイテム詳細

登録内容を編集ファイル形式で保存

一時保存へ追加

タグ情報を表示リリース履歴を表示詳細要約

公開

学術論文

Market Mechanisms and Funding Dynamics in Equity Crowdfunding

MPS-Authors

/persons/resource/persons196400

Hornuf, Lars
MPI for Innovation and Competition, Max Planck Society;

External Resource

There are no locators available

Fulltext (restricted access)

There are currently no full texts shared for your IP range.

フルテキスト (公開)

公開されているフルテキストはありません

付随資料 (公開)

There is no public supplementary material available

引用

Hornuf, L., & Schwienbacher, A. (2018). Market Mechanisms and Funding Dynamics in Equity Crowdfunding. Journal of Corporate Finance, 50, 556-574. doi:10.1016/j.jcorpfin.2017.08.009.

引用: https://hdl.handle.net/11858/00-001M-0000-002D-E8B4-6

要旨

Equity crowdfunding is a new form of entrepreneurial finance, in which investors do not receive perks or engage in pre-purchase of the product, but rather participate in the future cash flows of a firm. In this paper, we analyze what determines individual investment decisions in this new financial market. One important factor that may influence the behavior of investors is the way the portal allocates securities. We use unique data from four German equity crowdfunding portals to examine how the allocation mechanism affects funding dynamics. In contrast with the crowdfunding campaigns on Kickstarter, on which the typical pattern of project support is U shaped, we find that equity crowdfunding dynamics are L shaped under a first-come, first-served mechanism and U shaped under a second-price auction. The evidence also shows that investors base their decisions on information provided by the entrepreneur in the form of updates as well as by the investment behavior and comments of other crowd investors.