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- Title
Equity Crowdfunding and Governance: Toward an Integrative Model and Research Agenda.
- Authors
Cumming, Douglas J.; Vanacker, Tom; Zahra, Shaker A.
- Abstract
Equity crowdfunding markets have grown exponentially over the last few years. Despite this impressive growth, significant informational asymmetry problems may plague these markets, making them susceptible to difficulties and even market failure. In this paper, we depart from extant equity crowdfunding research that has focused almost exclusively on the funding success and funding dynamics on platforms to study the effective governance of equity-crowdfunded (ECF) firms and how it relates to these firms' success. We propose a conceptual model that identifies a multitude of governance mechanisms (e.g., internal or external and formal or informal) that potentially operate in equity crowdfunding markets to reduce adverse selection and moral hazard problems. Further, building on this framework, we offer a roadmap for future research that examines how different governance mechanisms may help in the selection and development of successful ECF firms.
- Subjects
EQUITY crowd funding; STOCK exchanges; MORAL hazard; MARKET failure; CONCEPTUAL models
- Publication
Academy of Management Perspectives, 2021, Vol 35, Issue 1, p69
- ISSN
1558-9080
- Publication type
Article
- DOI
10.5465/amp.2017.0208