Get 20M+ Full-Text Papers For Less Than $1.50/day. Start a 14-Day Trial for You or Your Team.

Learn More →

Examination of the success drivers of equity crowdfunding campaigns in Malaysia

Examination of the success drivers of equity crowdfunding campaigns in Malaysia This study aims to investigate the drivers of successful equity crowdfunding campaigns in Malaysia.Design/methodology/approachData for this study are collected manually from 5 different equity crowdfunding platforms in Malaysia. A total of 101 campaigns are analyzed, out of which the final sample used for this study is 97. The relationships are analyzed via ordinary least squares multiple regression analysis.FindingsThe results of the analysis show that minimum funding target, minimum investment required, pre-money valuation and length of pitch video are highly significant in influencing the success of the campaign. Percentage of equity retained is only significant at the 10% level. The size of the project team and the text length of the pitch are found to be insignificant. In addition, all the variables, except for equity retained and the minimum investment required, are found to have a positive impact on the success of an equity crowdfunding campaign in Malaysia.Originality/valueTo the best of the authors’ knowledge, this is the first study that investigates the success factors of equity crowdfunding campaigns in a developing country such as Malaysia. In addition, this study contributes to the literature on equity crowdfunding success via the inclusion of less-studied variables such as pre-money valuation and minimum investment required. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Entrepreneurship in Emerging Economies Emerald Publishing

Examination of the success drivers of equity crowdfunding campaigns in Malaysia

Loading next page...
 
/lp/emerald-publishing/examination-of-the-success-drivers-of-equity-crowdfunding-campaigns-in-0l5Gr8cy81

References (64)

Publisher
Emerald Publishing
Copyright
© Emerald Publishing Limited
ISSN
2053-4604
eISSN
2053-4604
DOI
10.1108/jeee-04-2021-0134
Publisher site
See Article on Publisher Site

Abstract

This study aims to investigate the drivers of successful equity crowdfunding campaigns in Malaysia.Design/methodology/approachData for this study are collected manually from 5 different equity crowdfunding platforms in Malaysia. A total of 101 campaigns are analyzed, out of which the final sample used for this study is 97. The relationships are analyzed via ordinary least squares multiple regression analysis.FindingsThe results of the analysis show that minimum funding target, minimum investment required, pre-money valuation and length of pitch video are highly significant in influencing the success of the campaign. Percentage of equity retained is only significant at the 10% level. The size of the project team and the text length of the pitch are found to be insignificant. In addition, all the variables, except for equity retained and the minimum investment required, are found to have a positive impact on the success of an equity crowdfunding campaign in Malaysia.Originality/valueTo the best of the authors’ knowledge, this is the first study that investigates the success factors of equity crowdfunding campaigns in a developing country such as Malaysia. In addition, this study contributes to the literature on equity crowdfunding success via the inclusion of less-studied variables such as pre-money valuation and minimum investment required.

Journal

Journal of Entrepreneurship in Emerging EconomiesEmerald Publishing

Published: Feb 28, 2023

Keywords: Emerging market; Equity crowdfunding; Funding success

There are no references for this article.