Full metadata
Title
An exploration of the impact of regulatory sentiment on investment-based crowdfunding globally
Description
This paper investigates the influence of regulatory sentiment on investment-based crowdfunding across various global markets. Crowdfunding, a capital-raising method where individuals collectively invest in projects, businesses, or causes, has significantly evolved with the advent of digital platforms. The emergence of lending-based and investment-based crowdfunding has led to the development of diverse regulatory frameworks worldwide. This study focuses on the relationship between regulatory sentiment and two critical dimensions of crowdfunding markets: investment volume and platform count. By conducting a multivariate analysis using data from the Cambridge Center for Alternative Finance and GDP statistics from the OECD, the paper examines whether investor sentiment about regulation impacts these two variables across seven developed markets.
The research centers around three primary questions: the existence and nature of any statistically significant relationships between regulatory sentiment and investment volume/platform count; and which type of sentiment (adequate, excessive, or inadequate) has the strongest relationship with these variables. The analysis includes a detailed review of regulatory frameworks in the United States, United Kingdom, France, Germany, Spain, Italy, and Malaysia.
The findings reveal a statistically significant relationship between adequate and excessive regulatory sentiment and both investment volume and platform count, with adequate sentiment showing a positive impact and excessive sentiment demonstrating a negative effect. The results highlight the importance of balanced regulatory frameworks in fostering healthy crowdfunding ecosystems and provide insights into how investor perceptions of regulation can influence market dynamics. Future research could further explore these relationships, potentially using more objective measures of regulations and examining the bidirectional influence between market performance and regulatory sentiment.
Date Created
2023-12
Contributors
- Konstantinov, Phillip (Author)
- Lindsey, Laura (Thesis director)
- Hertzel, Michael (Committee member)
- Barrett, The Honors College (Contributor)
- Department of Finance (Contributor)
- Computer Science and Engineering Program (Contributor)
Topical Subject
Resource Type
Extent
47 pages
Copyright Statement
In Copyright
Primary Member of
Peer-reviewed
No
Open Access
No
Series
Academic Year 2023-2024
Handle
https://hdl.handle.net/2286/R.2.N.190254
System Created
- 2023-11-16 02:40:47
System Modified
- 2023-11-21 04:29:34
- 1 year ago
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