Universiti Teknologi Malaysia Institutional Repository

Resolving information asymmetric and social network theories challenges in crowdfunding campaigns

Kuma, Francis Kwaku and Yusoff, Mohd. Effandi (2021) Resolving information asymmetric and social network theories challenges in crowdfunding campaigns. International Journal of Academic Research in Business and Social Sciences, 11 (4). pp. 89-102. ISSN 2222-6990


Official URL: http://dx.doi.org/10.6007/IJARBSS/v11-i4/9628


Using Asymmetric Information and Social Networking theories the paper highlights the relevance of these two theories to crowdfunding. The study combines these theoretical perspectives with the practical aspects of startup companies raising finance using the crowd. The key concepts of these theories are critically considered and the study is conducted in the form of a review of the literature and expressing of opinion. Consequently, the experiential justification of the theories presented is not within the scope of this paper. The study is also limited generally to the field of crowdfunding as an alternate source of funding for start-up companies. We evaluate and discuss how lack of information between project initiators and backers can result in the project's inability to meet the project goal. We also consider how social network connection affects fundraising using the crowd. First, crowdfunding has some information difficulties because it involves the raising of funds using internet platforms. Second, the number of a founder's social network connections is associated positively with the capital raised from a project.

Item Type:Article
Uncontrolled Keywords:Information Asymmetric, Crowdfunding, Social Networking, Startups
Subjects:H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
ID Code:97691
Deposited By: Widya Wahid
Deposited On:27 Oct 2022 10:12
Last Modified:27 Oct 2022 10:12

Repository Staff Only: item control page