An evaluation of the perceptions and behaviours of individual investors in Malaysia towards equity crowdfunding

Abdul Aziz, Aza Izati (2018) An evaluation of the perceptions and behaviours of individual investors in Malaysia towards equity crowdfunding. [Dissertation (University of Nottingham only)]

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Abstract

The regulatory framework for equity crowdfunding was introduced in Malaysia in 2015. As at December 2017, approximately RM 33 million has been raised through a total of 37 successful equity crowdfunding campaigns in Malaysia. Notwithstanding its promising prospects, questions however arise as to the true viability of equity crowdfunding in bridging the funding gap that is currently faced by micro, small and medium-sized businesses in Malaysia. This Management Project seeks to explore this question by specifically focusing on the providers of capital in equity crowdfunding, i.e. the individual investors. The primary objective of this Management Project is to evaluate their perceptions and behaviours towards equity crowdfunding, based on their awareness, interests as well as factors that may influence their investment decisions. By evaluating the perceptions and behaviours of individual investors, it is hoped that valuable insights could be gained with respect to the attractiveness of equity crowdfunding as a form of investment and its overall viability as a potential solution in bridging the funding gap faced by micro, small and medium-sized businesses.

In order to achieve the objective of this Management Project, a research was undertaken primarily based on a quantitative research method. A survey questionnaire was administered electronically by way of online distribution. A total of 134 individuals participated and responded to the online survey. Based on the data collected, data analyses were performed using the Statistical Package for the Social Sciences (SPSS) V.23 Software.

Key research results revealed that the majority of participants have never invested in equity crowdfunding albeit they are aware of the existence and availability of equity crowdfunding as an investment option. The majority of these respondents claimed that they are interested to invest in equity crowdfunding, but have not invested primarily due to concerns over the risks and reliability associated with investing in equity crowdfunding. However, they are inclined and willing to shift their investment preference if they could earn high financial returns from investing in equity crowdfunding. The significance and implications of these results are analysed and discussed with references to behavioural economics concepts, together with limitations and recommendations on areas that can be further improved on for future researches purposes.

Item Type: Dissertation (University of Nottingham only)
Depositing User: Library Services, UNM
Date Deposited: 13 Sep 2018 06:55
Last Modified: 08 Feb 2019 10:46
URI: http://eprints.nottingham.ac.uk/id/eprint/54685

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