Decoding the success of equity crowdfunding: investment decisions of professional and non-professional investors

Enrico Battisti (), Ciro Troise (), Antonio Salvi () and Michael Christofi ()
Additional contact information
Enrico Battisti: University of Turin
Ciro Troise: University of Turin
Antonio Salvi: University of Turin
Michael Christofi: Cyprus University of Technology

Review of Managerial Science, 2024, vol. 18, issue 12, No 4, 3545-3573

Abstract: Abstract This paper investigates the investment decisions of professional and non-professional investors and the role of three classes of factors, i.e. Corporate Social Responsibility (CSR) orientation, human capital, and composition of ownership, in influencing the performance of equity crowdfunding campaigns, measured in terms of funding collected (in %), final investors involved and the funding amount raised (in €). The quantitative study is focused on the Italian equity crowdfunding market since Italy has been the first country in Europe to regulate this specific model and professional investors are required by law, thus allowing to compare the two classes of investors. Using a sample of 232 campaigns on the two leading Italian ECF platforms, empirical estimates based on regression analyses show that all the three classes of factors determine (or not) the campaigns’ success, and the overall performance is determined by non-professional investors’ orientation. Specifically, our results highlight that CSR orientation does not play a significant role in driving the success of equity crowdfunding campaigns, unlike the human capital and the compositions of ownership.

Keywords: Composition of ownership; CSR orientation; Equity crowdfunding; Human capital; Non-professional investor; Professional investor (search for similar items in EconPapers)
JEL-codes: G23 G32 G39 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://link.springer.com/10.1007/s11846-024-00725-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

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:spr:rvmgts:v:18:y:2024:i:12:d:10.1007_s11846-024-00725-5

Ordering information: This journal article can be ordered from
http://www.springer.com/business/journal/11846

DOI: 10.1007/s11846-024-00725-5

Access Statistics for this article

Review of Managerial Science is currently edited by R. Ewert and W. Kürsten

More articles in Review of Managerial Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().