Equity Crowdfunding in China: An Exploratory Study
SHARE THIS
The proposed project is an exploratory study of equity crowdfunding in China. While most research on crowdfunding focuses on the relative success of fundraising efforts in prepaid/rewards-based crowdfunding projects, we seek to understand what happens after fundraising in the under-examined format of equity crowdfunding (EC). Specifically, what types of formal and informal governance institutions are established in EC-backed firms following the mobilization of funding? What is the relationship between governance and performance in EC-backed firms vs. comparable firms that obtain equity financing from venture capital (VC) firms? The co-PIs will explore these issues through multi-case, inductive research methodology, involving four or more firms in each category (EC- and VC-backed), operating in similar locations and sectors. Our findings will have policy implications for China’s emergent regulatory regime for internet finance; and theoretical implications for research on entrepreneurship, corporate governance, financial development, and institutional innovation in emerging market economies.
Get updates from HKUST IEMS
