Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7425666 | Journal of Business Venturing | 2018 | 21 Pages |
Abstract
Prior research has focused on the factors that affect funding success on equity crowdfunding platforms, but a detailed understanding of the factors that drive firms to search for equity crowdfunding in the first place is lacking. Drawing on the pecking order theory, we argue that firms list on equity crowdfunding platforms as a “last resort”-that is, when they lack internal funds and additional debt capacity. In line with the pecking order theory, the empirical evidence shows that firms listed on equity crowdfunding platforms are less profitable, more often have excessive debt levels, and have more intangible assets than matched firms not listed on these platforms. We discuss the implications for theory and practice.
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Xavier Walthoff-Borm, Armin Schwienbacher, Tom Vanacker,