Role of successive round as a quality signal in equity crowdfunding: Novel evidence from the perspective of investors’ preferences
Syed Muhammad Hamza Abid Wasti,
Jaleel Ahmed,
Mushtaq Hussain Khan
Abstract:Equity crowdfunding provides entrepreneurs and founders the opportunity to raise funds from a large number of potential investors, using quality signals to influence their investment decisions. Drawing from the lens of signaling theory and the elaboration likelihood model, this study explores the role of successive equity crowdfunding rounds as a quality signal in shaping investors’ preferences in crowdfunded firms and its influence on their investment decisions. Our findings reveal that successive equity crow… Show more
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