Signaling Success Factors in Alternative Entrepreneurial Finance

Francesca Battaglia (), Francesco Busato () and Maria Manganiello ()
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Francesca Battaglia: University of Naples “Parthenope”
Francesco Busato: University of Naples “Parthenope”
Maria Manganiello: University of Naples “Parthenope”

Chapter Chapter 8 in Banking and Beyond, 2020, pp 169-190 from Palgrave Macmillan

Abstract: Abstract This paper focuses on the role of signaling in equity crowdfunding by examining the determinants of funding success in the Italian context. By using a unique dataset of 191 successful and unsuccessful campaigns, launched between January 2014 and November 2018 on the leading Italian equity crowdfunding platforms, we analyze the signaling role played toward external investors by the disclosure of financial information, the share of equity retained by founders and by the size of their social networks. Our results show that the disclosure of financial information, the share of equity retained by entrepreneurs and the their social capital have a positive and significant impact on funding success and are interpreted as quality signals of crowdfunding campaigns by external investors.

Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:pal:pmschp:978-3-030-45752-5_8

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DOI: 10.1007/978-3-030-45752-5_8

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