Research Paper
Year: 2023 | Month: May | Volume: 10 | Issue: 5 | Pages: 512-522
DOI: https://doi.org/10.52403/ijrr.20230559
Analysis of Factors Influencing the Success of Funding in Equity Crowdfunding Registered in the Financial Services Authority in Indonesia
Ina Rahmi Diwasya1, Erlina2, Abdhy Aulia Adnans3
1,2,3Department of Accounting, Faculty of Economics and Business Universitas Sumatera Utara, Indonesia
Corresponding Author: Ina Rahmi Diwasya
ABSTRACT
This study aims to determine and test the effect of intellectual capital signals and the level of uncertainty on the success of funding on equity crowdfunding platforms that are officially registered with the financial services authorities in Indonesia.
The population of this study is prospectuses for open offers made by MSMEs on equity crowdfunding platforms in Indonesia in 2019 – 2021, with a total of 147 prospectus observation data. The sampling technique used is purposive sampling, which is a sampling technique with specific criteria. Multiple regression analysis is the method to test the hypothesis.
This study argues that intellectual capital and the uncertainty presented in an open offer in equity crowdfunding can be perceived by novice investors or crowd funders as a signal of business quality and encourages them to invest and meet funding targets by exploiting the role of signalling theory in reducing information asymmetry.
The study results show that only business alliances indicate intellectual capital, and financial projections indicate the level of uncertainty that has a positive and significant effect on the number of funds that indicate successful funding. Meanwhile, business experience and product innovation, indicators of intellectual capital, and date debt, indicators of uncertainty, have no significant effect. Based on these findings, the success of equity crowdfunding, officially registered in Indonesia, is influenced by business alliances and financial projections. This research provides valid implications for entrepreneurs, platform managers, and policymakers/authorities.
Keywords: funding success, equity crowdfunding, intellectual capital, level of uncertainty
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