Law, Trust, and the Development of Crowdfunding
49 Pages Posted: 20 Jun 2017 Last revised: 20 Jul 2020
Date Written: July 1, 2020
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: Suggested Citation