Invest or regret? An empirical investigation into funding dynamics during the final days of equity crowdfunding campaigns
| Autor: | Judy Rich, Joe Cox, Thang Nguyen |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Economics Strategy and Management media_common.quotation_subject Order (exchange) 0502 economics and business Quality (business) Equity crowdfunding Business and International Management Empirical evidence media_common 040101 forestry Finance 050208 finance business.industry 05 social sciences Uncertainty Regret 04 agricultural and veterinary sciences Investment (macroeconomics) embargoover12 Cost of delay 0401 agriculture forestry and fisheries Options theory business |
| Zdroj: | Nguyen, T, Cox, J & Rich, J 2019, ' Invest or regret? An empirical investigation into funding dynamics during the final days of equity crowdfunding campaigns ', Journal of Corporate Finance, vol. 58, pp. 784-803 . https://doi.org/10.1016/j.jcorpfin.2019.07.011 |
| ISSN: | 0929-1199 |
| DOI: | 10.1016/j.jcorpfin.2019.07.011 |
| Popis: | In this study, we use the options theory of investment to investigate the funding behaviour of investors in equity crowdfunding. Options theory argues that when faced with uncertainty, investors have the ‘option’ to delay their irreversible investments, although incur a cost in doing so. Demonstrating that investments in equity crowdfunding are characterised by low levels of irreversibility (i.e., they are semi-reversible), moderate costs of delay and high levels of uncertainty, we follow the predictions of options theory in hypothesising that investors may rationally delay their investments in order to gain new information about the quality of businesses in which they invest. We find empirical evidence in support of these arguments when investigating the dynamics of investment activity in campaigns hosted on the UK equity crowdfunding platform Crowdcube. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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