Legal Institutions, Social Capital, and Financial Crowdfunding: A Multilevel Perspective

Wanxiang Cai (), Friedemann Polzin () and Erik Stam
Additional contact information
Wanxiang Cai: Utrecht University School of Economics
Friedemann Polzin: Utrecht University School of Economics

Chapter 9 in Advances in Crowdfunding, 2020, pp 183-205 from Springer

Abstract: Abstract In recent years, financial crowdfunding for entrepreneurship has experienced exponential growth. Because financial crowdfunding involves a range of risks, it requires comprehensive governance mechanisms. In the entrepreneurial finance literature, both legal institutions and social capital have been discussed in order to address the risks in financial markets. This chapter builds a three-level stylized model to explain how legal institutions and social capital at macro, meso, and micro levels affect the performance of crowdfunding campaigns and the development of the financial crowdfunding market. We explicitly highlight the role of platforms in enforcing laws and building social capital at both meso and micro levels, which has been neglected in extant perspectives on the development of the crowdfunding market, and we develop corresponding propositions.

Keywords: Institutional theory; Institutionalism; Legal institutions; Regulation; Social capital; Entrepreneurial finance; Crowdfunding platform; Crowdfunding campaign; Risk (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:sprchp:978-3-030-46309-0_9

Ordering information: This item can be ordered from
http://www.springer.com/9783030463090

DOI: 10.1007/978-3-030-46309-0_9

Access Statistics for this chapter

More chapters in Springer Books from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().