Law, Trust, and the Development of Crowdfunding

49 Pages Posted: 20 Jun 2017

Date Written: July 1, 2020

Abstract

Using a unique hand-collected sample of crowdfunding volume obtained by surveying over 2,200 crowdfunding platforms worldwide, I show that the introduction of explicit legal regulation appears to significantly increase crowdfunding volume. The effect appears to be at least partly causal. Crowdfunding volume is at best weakly related to social factors such as the country level of generalized trust.

Keywords: Industrial Organization, Alternative finance, Distributed finance, Crowdsourcing, Crowdfunding, Law and finance, Peer-to-Peer, P2P lending, Equity crowdfunding, Social Finance

JEL Classification: G21, G23

Suggested Citation

Rau, P. Raghavendra, Law, Trust, and the Development of Crowdfunding (July 1, 2020). Available at SSRN: https://ssrn.com/abstract=2989056 or http://dx.doi.org/10.2139/ssrn.2989056

P. Raghavendra Rau (Contact Author)

University of Cambridge ( email )

Cambridge Judge Business School
Trumpington Street
Cambridge, Cambridgeshire CB21AG
United Kingdom
3103626793 (Phone)

HOME PAGE: http://www.raghurau.com/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
1,306
Abstract Views
4,211
PlumX Metrics