How do crowd investors prioritize evaluation criteria for equity crowdfunding? A decision support model

Norah Almubarak and Tarifa Almulhim

International Journal of Islamic and Middle Eastern Finance and Management, 2024, vol. 18, issue 2, 271-293

Abstract: Purpose - The purpose of this paper is to propose a decision support model to prioritize equity crowdfunding (ECF) evaluation criteria under an uncertain environment. Design/methodology/approach - The proposed decision support model first identifies a holistic list of evaluation criteria and subcriteria. These criteria are then analyzed using the analytic hierarchy process (AHP) method in an interval-valued intuitionistic fuzzy (IVIF) environment to identify the relative importance attached by crowdfunding investors to five sets of evaluation criteria (fundraiser, platform, project, campaign and investment characteristics) and their associated subcriteria. The proposed decision support model and ECF evaluation criteria were empirically examined using a real-life case study from January to February 2023. Findings - The case study illustrated that the decision support model enhanced fairness and transparency in the prioritization of ECF evaluation criteria. Project characteristics were the most important criterion, followed by fundraiser characteristics and investment characteristics. These results can serve as a benchmark to help crowd investors choose ventures more wisely and make better investment decisions. Originality/value - The tasks of modeling and prioritizing ECF evaluation criteria are relatively rarely addressed in the literature, especially under uncertainty. This study is one of the first attempts to use the AHP to explore ECF evaluation criteria in an IVIF environment; in particular, it sheds light on the importance that crowd investors attach to criteria related to fundraiser, platform, project, campaign and investment characteristics.

Keywords: Analytic hierarchy process; Interval-valued intuitionistic fuzzy sets; Decision support model; Equity crowdfunding; Evaluation criteria (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)
Access to full text is restricted to subscribers

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:eme:imefmp:imefm-03-2024-0146

DOI: 10.1108/IMEFM-03-2024-0146

Access Statistics for this article

International Journal of Islamic and Middle Eastern Finance and Management is currently edited by Dr Syed Aun Raza Rizvi

More articles in International Journal of Islamic and Middle Eastern Finance and Management from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().