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Research Of Factors Influencing Eqity Crowdfunding Financail Performance

Posted on:2017-04-19Degree:MasterType:Thesis
Country:ChinaCandidate:Y L LiFull Text:PDF
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Equity crowdfunding, as one form of crowdfunding, firstly emerged in America and developed rapidly after the Jumpstart Our Business Startups (JOBS) Act. It is considered a new approach to the financial problem of startups and small and medium enterprises. Thus, research of factors influencing equity crowdfunding financial performance is of great significance.Firstly, this paper sort domestic and foreign regulatory files about equity crowdfunding to define the research object. After regulatory files about equity crowdfunding issuing, equity crowdfunding refers public offering equity crowdfunding in particular and the private equity crowdfunding is renamed Internet private equity financing. Before the crowdfunding part of JOBS passes, equity crowdfunding of America is the same as private equity crowdfunding of China. Now it has the same meaning as public offering equity crowdfunding domestically. Considering no practice of public offering equity crowdfunding in domestic, the research object of this paper is Internet private equity financing, which will guide the public offering equity crowdfunding in the future. Secondly, the paper laid a solid research base by reviewing research results and theories about equity crowdfunding and capital structure.The paper propose a new signaling model of equity crowdfunding financing, which is based on Ahlers’and Zheng Haichao’s models, to continue the research of factors influencing equity crowdfunding financing performance. In this model, human capital and social capital is used to describe the venture quality, using project valuation as the proxy variable of investment risk. Financial forecast, equity share and product stage are to measure the level of uncertainty. Venture quality, investment risk and level of uncertainty are the main factors influencing financing performance, while financing performance is defined as funding amount, number of investors and financing result. Multivariate regression model, logistic regression model and T test are used to examine these factors" influence on financing performance. The result shows that startup experience, project attention and financial forecast has statistically significant influence. And a higher project valuation is positive and statistically significant related to financing performance measured by funding amount and number of investors. Also, the paper found that raising the percentage of offered equity will promote financing performance if percentage of most projects’ offered equity is very low.In the last part, the paper suggest equity crowdfunding platforms strengthen management before online, public information rules and General Partner management. According to the result of the paper and previous work, the paper also gives some advice on how to effectively provide public information as signals showing ventures’ value.
Keywords/Search Tags:Equity crowdfunding, signaling, funding
PDF Full Text Request
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