Research Question/Issue This study investigates the relationship between financial literacy and the survival profile of the security‐based crowdfunding platforms. Security‐based crowdfunding has recently emerged as a novel market that allows small investors to engage directly in financing entrepreneurial ventures. However, a certain level of financial literacy is required to understand and manage these digital finance tools. A better understanding of the impact of financial literacy is, therefore, central to the development of these markets and the achievement of their inclusive potential. Research Findings/Insights Using data of the universe of 432 security‐based crowdfunding platforms in 37 OECD countries from 2007 to 2019, we find higher platforms' survival profiles where the level of financial literacy is high. Financial literacy, however, needs to combine with specific platform characteristics to take full effect, as it matters more to those platforms that deliver voting rights and that provide poorer value‐added services to crowdfunding investors. Theoretical/Academic Implications This study provides empirical support to the role of governance mechanisms at the platform level for differences in the level of financial literacy across countries. As such, it contributes to literature both on financial literacy and corporate governance. Additionally, it extends previous research in crowdfunding to the platform level. Practitioner/Policy Implications This study calls for the attention of policymakers interested in the development of crowdfunding markets. The importance of financial literacy varies with the presence of governance mechanisms and information production at the platform‐level.

(2022). Financial Literacy and Security‐based Crowdfunding [journal article - articolo]. In CORPORATE GOVERNANCE. Retrieved from http://hdl.handle.net/10446/172537

Financial Literacy and Security‐based Crowdfunding

Meoli, Michele;Rossi, Alice;Vismara, Silvio
2022-01-01

Abstract

Research Question/Issue This study investigates the relationship between financial literacy and the survival profile of the security‐based crowdfunding platforms. Security‐based crowdfunding has recently emerged as a novel market that allows small investors to engage directly in financing entrepreneurial ventures. However, a certain level of financial literacy is required to understand and manage these digital finance tools. A better understanding of the impact of financial literacy is, therefore, central to the development of these markets and the achievement of their inclusive potential. Research Findings/Insights Using data of the universe of 432 security‐based crowdfunding platforms in 37 OECD countries from 2007 to 2019, we find higher platforms' survival profiles where the level of financial literacy is high. Financial literacy, however, needs to combine with specific platform characteristics to take full effect, as it matters more to those platforms that deliver voting rights and that provide poorer value‐added services to crowdfunding investors. Theoretical/Academic Implications This study provides empirical support to the role of governance mechanisms at the platform level for differences in the level of financial literacy across countries. As such, it contributes to literature both on financial literacy and corporate governance. Additionally, it extends previous research in crowdfunding to the platform level. Practitioner/Policy Implications This study calls for the attention of policymakers interested in the development of crowdfunding markets. The importance of financial literacy varies with the presence of governance mechanisms and information production at the platform‐level.
articolo
Meoli, Michele; Rossi, Alice; Vismara, Silvio
(2022). Financial Literacy and Security‐based Crowdfunding [journal article - articolo]. In CORPORATE GOVERNANCE. Retrieved from http://hdl.handle.net/10446/172537
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Descrizione: This is the peer reviewed version of the following article: Meoli, M, Rossi, A, Vismara, S. Financial literacy and security‐based crowdfunding. Corp Govern Int Rev. 2021; 1– 28, which has been published in final form at https://doi.org/10.1111/corg.12355. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions.
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