A Cross-Platform Analysis of the Equity Crowdfunding Italian Context: The Role of Intellectual Capital

47 Pages Posted: 7 May 2020

See all articles by Francesca Battaglia

Francesca Battaglia

University of Naples Parthenope

Francesco Busato

University of Naples Parthenope

Maria Manganiello

University of Naples Parthenope; University of Naples Parthenope

Date Written: December 5, 2019

Abstract

Does intellectual property positively affect the success of the equity crowdfunding campaigns? By using a unique dataset of 191 equity crowdfunding campaigns, gathered from the Italian platforms over the period 2014-2018, we answer this question, focusing on the effect of patents on funding success. In particular, patents may serve as signals of the unobservable quality of equity crowdfunding campaigns. Then, following the literature on success factors for crowdfunding, we also analyze the signaling role played towards external investors by the share of equity retained by founders and by the size of their social networks. Our results show that intellectual property (i.e. patents), the amount of equity retained by entrepreneurs and their social capital have a positive and significant impact on funding success and are interpreted as quality signals of crowdfunding campaigns by external investors.

Keywords: Equity crowdfunding, Signaling theory, Intellectual capital, Entrepreneurial finance, Information asymmetries

JEL Classification: D82, G11, G21, G24, G30, G32, L26, M13

Suggested Citation

Battaglia, Francesca and Busato, Francesco and Manganiello, Maria and Manganiello, Maria, A Cross-Platform Analysis of the Equity Crowdfunding Italian Context: The Role of Intellectual Capital (December 5, 2019). Available at SSRN: https://ssrn.com/abstract=3575109 or http://dx.doi.org/10.2139/ssrn.3575109

Francesca Battaglia (Contact Author)

University of Naples Parthenope ( email )

Via Medina 40
Via Generale Parisi, 13
Naples, 80133
Italy

Francesco Busato

University of Naples Parthenope ( email )

Via Medina 40
Via Generale Parisi, 13
Naples, 80133
Italy

Maria Manganiello

University of Naples Parthenope ( email )

Via Generale Parisi, 13
Naples, 80133
Italy

University of Naples Parthenope ( email )

Via Generale Parisi, 13
Naples, 80133
Italy

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
81
Abstract Views
374
rank
374,448
PlumX Metrics