An Empirical Research Based On The Impact Of Tractional Investor System On The Rate Of Fulfillment And Rate Of Success Of Financing Of The Chinese Equity Crowd-funding

At the end of 2011,the equity crowdfunding formally entered into China.Subsequently,in the same year,Chinese first equity crowdfunding platform of Angelica was established,followed by the emergence of Venture Capital Circle,36 Krypton and other equity crowdfunding platforms.In the report of the government work in 2014,Premier Li Keqiang proposed the slogan “implement the initial pilot of equity crowdfunding capital-raising”.The slogan pointed out a clear direction of the development of equity crowdfunding.From then on,equity crowdfunding has become a force that cannot be ignored in crowdfunding field.However,influenced by the impact of information asymmetry,project owners and a large number of investors face difficult choices before investment and financing during the process of equity crowdfunding capital-raising.Project owners generally faced problems about financing difficulties and low financing completion rate,and investors faced the difficulty in making a choice among a large number of investment projects and platforms because it is difficult to find a suitable project for their own investment.These problems make domestic development of equity crowdfunding very difficult.In order to solve those problems,most of the platforms implemented a system called “traction investment system” or“tractional investor+following investor system”.The system means equity crowdfunding platform will invite a leader with rich investment experience and solid professional knowledge and financial strength to act as a project leader and coordinator,and other investors follow the path of leader to finish their investment.After the introduction of this system,has it really played a role in reducing the impact of information asymmetry between the financing project owner and the investor during the process of equity crowdfunding capital-raising? Why are the majority of the domestic equity crowdfunding platforms fired with enthusiasm to adopt this system?Can the traction investment system can really improve the probability of project success and the completion rate of financing,and thus reduce the time required for financing projects? This study is around the traction investment system for further research.This paper firstly analyzes the basic content and development status of our country's equity crowdfunding.According to the foreign scholars' analysis of the theory of equity crowdfunding and the theory of tractional investor system,the paper conductsa theoretical analysis of information asymmetry and the function of information transfer.Finally,this paper analyzes the factors influencing the success of equity crowdfunding from three dimensions: the success of the financing project or not,the financing completion rate of the financing project and the time spent on financing.The author chooses the relevant data of the eight well-known equity crowdfunding platforms in China from 2012 to 2016,and creates structure model and uses the classical Logit regression model and the multiple linear regression model to analyze the sample and studies whether the tractional investor system and tractional investors' investment will influence the overall project.The empirical study found that the existence of the tractional investor system and the investment proportion tractional investors account for can indeed improve the financing success rate and the financing completion rate of the projects while reducing the completion time of the financing.At the same time,the target financing amount of the project and the number of investor and the project's attention it attracted,the number of topics will also have an impact on the financing of the project.Thus,it is concluded that the tractional investor system exactly plays a significant role in signal transmission and eliminates the impact of information asymmetry to some degree in the process of equity crowdfunding,which will promote the development of equity crowdfunding.Meanwhile,it is valuable and practical in terms of eliminating the impact of information asymmetry to increase the efficiency and success of financing.