An Analysis On The Factors Of The Completion Of Equity Crowdfunding Projects

Equity crowdfunding is a kind of direct financing model in which financiers obtain funds from investors by selling a portion of their shares through the Internet.The financier release project information on the platform for investors to browse and the investor obtain return on equity.Compared with traditional equity financing,equity crowdfunding uses Internet channels to reduce transaction costs and expand financing channels.It will provide great support for startups and small enterprises,which coincides with the policy that our country currently advocates for finance should serve the real economy.In recent years,it has grown up rapidly in the world.Compared to P2 P lending,equity crowdfunding has a relatively high barrier to entry.For both the financing and investor are more professional.Therefore,a more in-depth and meticulous research is necessary for equity crowdfunding.How to improve the success rate of equity crowdfunding projects and analyze the factors that affect their success has also become an urgent problem for many scholars.Using transaction data from the well-known equity crowdfunding in China-the Jingdong Crowdfunding,this paper analyses the success factors of equity crowdfunding with multivariate linear regression model.According to previous research,factors were classified into three major dimensions-basic attributes,social dimensions,and external influences.the main research contents and results are as follows:We build the success factors of projects model.According to the theoretical framework and foreign documents,we select the target project,the ratio of leading investment amount,starting investment amount,project announcement,number of points,number of investors and comments as explanatory variable.The proportion of financing is chosen as the explained variable to measure the financing success rate of equity crowdfunding projects.The empirical results show that the ratio of leading amount,the number of discussions,the number of investors,project announcements,and the amount of investment have a positive impact on the success of projects;the target amount of the project has negative impact on the success of projects;the number of likes has no significant effect on the success of projects.Then,the robustness test proves the robustness of the empirical results.Based on the conclusions,this paper provides some feasibility suggestions on improving Chinese equity crowdfunding.This paper emphasizes that the financiers should reduce the information asymmetry by increasing the proportion of pilots,lowering the target amount,implementing project announcements,and promoting interactive discussion of crowdfunding projects to increase the project success rate.