TY  - UNPD
A1  - Cumming, Douglas J.
A1  - Johan, Sofia Atiqah
A1  - Reardon, Robert S.
T1  - Governance and success in U.S. equity crowdfunding
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 668
N2  - We propose three governance mechanisms pertinent to equity crowdfunding and campaign success through mitigating pronounced information asymmetries and agency problems. First, unlike IPOs for which the effect of Delaware incorporation has declined or disappeared over time, we propose Delaware incorporation matters a great deal for success in the new setting of equity crowdfunding. Second, we propose that security design is a critical tool for equity crowdfunding success and even more important than the limited 2-year financial statement disclosure. Third, we propose that platforms as intermediaries between entrepreneurs and investors play an important role in mitigating and sometimes exacerbating information asymmetries and agency problems. The population of equity crowdfunding campaigns from market inception in May 2016 to Q2, 2021 in the United States provides strong support for these propositions.
T3  - CFS working paper series - 668 
KW  - Equity Crowdfunding
KW  - Governance
KW  - Delaware Incorporation
KW  - Fintech
KW  - COVID-19
Y1  - 2021
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/62486
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-624869
UR  - https://ssrn.com/abstract=3973145
IS  - October 26, 2021
PB  - Center for Financial Studies
CY  - Frankfurt, M.
ER  -