The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market

Wang, Qingman (2018) The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market. [Dissertation (University of Nottingham only)]

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Abstract

ABSTRACT

This study looks at the impact of the management's forecasts aggressiveness on successful equity crowdfunding. Expected sales growth rate and forecasting earnings growth rate are seen as indicators of aggressive management forecasts. By analyzing 127 successful crowdfunding companies on the UK CorwdCube platform, the regression result shows that having more aggressive forecasted sales is less likely to attract investors and will also reduce the final fundraising. In addition, in this empirical analysis, there is a positive correlation between the aggressiveness of forecasting earnings and successful crowdfunding companies. Although the expected increase rate in earnings can only attract a small number of investors, it also encourages investors to invest enough funds. Therefore, there is a connection between this financial forecasting signal and the successful crowdfunding companies. It also means that management forecasts can, to a certain extent, convey signals to investors through self-disclosure. Hence, equity crowdfunding seems to require a tighter regulatory environment.

Key Word: equity crowdfunding, management forecast, forecast aggressiveness. information asymmetry, investor behaviour, UK.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Wang, Qingman
Date Deposited: 14 Jul 2022 14:55
Last Modified: 14 Jul 2022 14:55
URI: http://eprints.nottingham.ac.uk/id/eprint/54344

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