Information flow and investment decision-making in equity crowdfunding

Catherine Deffains-Crapsky and Abdel Malik Ola

Chapter 7 in Research Handbook on Accounting and Information Systems, 2024, pp 98-116 from Edward Elgar Publishing

Abstract: Equity Crowdfunding (ECF) platforms are seen as a serious alternative or complementary source of funding for the entrepreneurial firm. The evolution of European regulation is a demonstration of this. If the ECF platform allows the democratisation of venture capital for both providers and seekers of capital, the question of the capacity of platforms to better manage the strong asymmetry of information in order to improve the decision-making of investors remains open. The ECF literature advocates that the strength of platforms is not only to significantly increase information but also diversify its nature by further legitimising the importance of soft/qualitative information. However, the improvement brought regarding the decision-making process remains an important challenge for ECF platforms which may even weaken the informational advantage of the model. The conclusion lays the foundation for future research to be prioritised.

Keywords: Business and Management; Economics and Finance; Innovations and Technology (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.elgaronline.com/doi/10.4337/9781802200621.00016 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:20914_7

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().