Influencing factors of equity crowdfunding financing performance — An empirical study

Abstract

Equity crowdfunding is in full swing, and the factors that influences the financing success have drawn considerable attention from researchers in Accounting, Finance and etc. This paper presents an empirical examination of the factors that influence the performance of equity crowdfunding financing with the data from “Jingdong Dongjia” in China. Based on the “lemon market” theory and signal theory, we examined the influencing factors to the behavior of the first set of investors of financing projects, and those to the eventual amount of money they can raise. We found that the percentage contributed by lead invest and the future information accounted for the confidence of the first investors. While for the eventual complete percentage, project quality is proved to the driving power.