This paper presents empirical evidence suggesting that financial literacy moderates the inverted U-shaped relationship between the amount of qualitative business information provided and the success of an equity crowdfunding campaign. Drawing on a sample of 807 equity offerings posted on 26 platforms operating in 6 Mediterranean and Gulf Cooperation Council countries (Cyprus, France, Israel, Italy, Turkey and the United Arab Emirates), the findings indicate that higher levels of financial literacy amplify the positive effect of more comprehensive qualitative business information. However, once a qualitative business information threshold is crossed, financial literacy results related to observed negative returns are even more substantial. These results, rooted into the signalling and information overload theoretical frameworks, offer valuable insights for entre- preneurs, platform administrators, investors and policymakers.

How financial literacy moderates the relationship between qualitative business information and the success of an equity crowdfunding campaign: evidence from Mediterranean and Gulf Cooperation Council countries

Carmen Gallucci
;
Rosalia Santulli;Riccardo Tipaldi
2023-01-01

Abstract

This paper presents empirical evidence suggesting that financial literacy moderates the inverted U-shaped relationship between the amount of qualitative business information provided and the success of an equity crowdfunding campaign. Drawing on a sample of 807 equity offerings posted on 26 platforms operating in 6 Mediterranean and Gulf Cooperation Council countries (Cyprus, France, Israel, Italy, Turkey and the United Arab Emirates), the findings indicate that higher levels of financial literacy amplify the positive effect of more comprehensive qualitative business information. However, once a qualitative business information threshold is crossed, financial literacy results related to observed negative returns are even more substantial. These results, rooted into the signalling and information overload theoretical frameworks, offer valuable insights for entre- preneurs, platform administrators, investors and policymakers.
File in questo prodotto:
Non ci sono file associati a questo prodotto.

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11386/4849731
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 4
  • ???jsp.display-item.citation.isi??? 4
social impact