Equity crowdfunding and governance: Toward an integrative model and research agenda

Douglas J. Cumming, Tom Vanacker, Shaker A. Zahra

Research output: Contribution to journalArticlepeer-review

54 Scopus citations


Equity crowdfunding markets have grown exponentially over the last few years. Despite this impressive growth, significant informational asymmetry problems may plague these markets,making themsusceptible to difficulties and evenmarket failure. In this paper,we depart from extant equity crowdfunding research that has focused almost exclusively on the funding success and funding dynamics on platforms to study the effective governance of equity-crowdfunded (ECF) firms and howit relates to these firms success.We propose a conceptual model that identifies a multitude of governance mechanisms (e.g., internal or external and formal or informal) that potentially operate in equity crowdfunding markets to reduce adverse selection and moral hazard problems. Further, building on this framework, we offer a roadmap for future research that examines how different governance mechanisms may help in the selection and development of successful ECF firms.

Original languageEnglish (US)
Pages (from-to)69-95
Number of pages27
JournalAcademy of Management Perspectives
Issue number1
StatePublished - 2021

Bibliographical note

Funding Information:
We are grateful to the editors and two anonymous AMP reviewers for helpful suggestions. We acknowledge financial support from the Research Foundation—Flanders [Grant # G012716N].

Publisher Copyright:
© 2021 Academy of Management. All rights reserved.


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