Research On Performance Of Equity-Based Crowdfunding In Leading Investor Mode

Information asymmetry between the project sponsor and the public investor seriously weakens effects of equity-based crowdfunding having on small and medium enterprises'financing.The facts that the amount of actual raised funds is much less than the target,and the significant decrease in the rate of crowdfunding financing indicate that there are some problems in the development of equity crowdfunding.To solve these problems,this paper discussed the advantages of a new equity-based crowdfunding,leading investor,analyzed whether it can have a positive impact on equity crowdfunding performance,and how the impact is generated.This paper firstly analyzed the current situation of equity crowdfunding in general mode,and found that the information asymmetry between the project sponsor and the public investor demaged the performance of equity-based crowdfunding.Next,based on the theory of asymmetric information and signal,this paper established a signaling model,specificly studying leading investors' role between the project sponsor and the public investors.Then,on the bases of previous study,this paper tried to build a new model from leading investors' point.The modle included uncertainty,enterprise ability and leading investors.Finally,this paper used a structural equation model containing a mediating variable to test the assumptions.Main conclusions are:(1)Leading investors can help to distinguish between good and bad projects,and strengthen the public investors' confidence in the project,which can improve the performance of equity-based crowdfunding.(2)By establishing structural equation model with leading investors as an intermediary variable,this paper found out that leading investors play an intermediary role between the project sponsor and the public investor:Uncertainty and ability of projects firstly influenced leading investors' decision,and then affected the public.Therefore,for enterprise,it is quite important to attract leading investors in equity-based crowdfunding.