Cognitive and affective values on equity crowdfunding investing decision


Pannir Chelvam, Hemalatha (2020) Cognitive and affective values on equity crowdfunding investing decision. Masters thesis, Multimedia University.

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Equity crowdfunding investments act as one of the technological innovations that provides opportunity for investors to invest in small but dynamic small and medium enterprises. Crowdfunding is the new mechanism that connects entrepreneurs and investors via online platforms. Small and medium-sized companies can raise their capital quickly and efficiently from the public through the platform. However, investing in equity crowdfunding is relatively new to investors and generally, their awareness is low. Therefore, this study investigated how investors are attracted to consider equity crowdfunding investment. Specifically, this study examined how cognitive values (financial, functional, information) and affective values (social, emotional, aesthetic and novelty) affect investors’ decision to participate in equity crowdfunding. This study employed a survey research method and questionnaires were used to collect data. The questionnaires were distributed to those who know about crowdfunding and in total, 140 valid responses were collected for the final analysis. Partial least squares path modelling was used to perform the data analysis. The results revealed that emotional, aesthetic and novelty values were positively associated with investors’ decision to participate in equity crowdfunding. On the other hand, financial, functional, informational, and social values did not generate any significant relationship with crowdfunding decision making. From the investing perspective, this study highlights that investors appear to be more influenced by psychological traits when making their investing decision. By understanding the psychology of investors, further steps can be taken to strengthen the regulations pertaining to crowdfunding and to increase trust and participation. It is expected that the results of this study could help in the formulation of government policy to encourage investors to participate in crowdfunding activities and to directly promote the success of entrepreneurial ventures in Malaysia.

Item Type: Thesis (Masters)
Additional Information: Call No.: HG4751 .H46 2020
Uncontrolled Keywords: Venture capital
Subjects: H Social Sciences > HG Finance > HG4501-6051 Investment, capital formation, speculation > HG4701-4751 Government securities. Industrial securities. Venture capital
Divisions: Faculty of Management (FOM)
Depositing User: Ms Nurul Iqtiani Ahmad
Date Deposited: 16 Jan 2023 03:27
Last Modified: 16 Jan 2023 05:13


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