New methods of entrepreneurial firm financing: Fintech, crowdfunding and corporate governance implications

Ahlström, David; Cumming, Douglas J.; Vismara, Silvio

doi:10.1111/corg.12258

Cited by 71 publications

(39 citation statements)

References 28 publications

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“…Our results are also in accordance with Storey's [42] finding that access to finance had a positive influence on SMEs' performance. According to Ahlstrom et al [49], it is more difficult for SMEs to access finance than it is for large organizations. Difficulty in accessing finance may cause SMEs to turn to inappropriate sources of finance and thus reduce their sustainability.…”

Section: Discussion Of the Findingsmentioning

confidence: 99%

“…As a firm develops more financial resources are required for expansion, innovation and to ensure the survival of the firm. It is more difficult for SMEs to access sources of finance, such as banks, capital markets or other suppliers of credit than it is for larger organizations [49]. Although all organizations need financial resources to start, survive and grow [50], it is difficult and costly for SMEs to gain access to external financial resources and in fact the accessibility of such resources has declined sharply.…”

Section: Access To Finance and Smes' Sustainabilitymentioning

confidence: 99%

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How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

2019

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Role of the knowledge-based resources in promoting sustainability in small and medium enterprises (SMEs) is currently a topic of debate. Financial literacy has been identified as a vital knowledge resource for financial decision making, but insufficient attention has been given to how SMEs’ financial literacy affects their sustainability. Drawing upon a knowledge-based perspective, peaking order theory and dual process theory, we constructed an integrated model to examine the impact of financial literacy, access to finance and financial risk attitude on SMEs’ sustainability. The sample included 291 chief financial officers (CFOs) of SMEs in Sri Lanka. The output of structural equation modelling revealed direct positive effects of financial literacy, access to finance and financial risk attitude on sustainability. Financial literacy also emerged as a predictor of access to finance and financial risk attitude. Moreover, access to finance and financial risk attitude were found to be partial mediators of the relationship between financial literacy and SMEs’ sustainability. Theoretical implications and practical implications for policymakers, industry practitioners and academics interested in promoting sustainability amongst SMEs are discussed.

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Section: Discussion Of the Findingsmentioning

confidence: 99%

Section: Access To Finance and Smes' Sustainabilitymentioning

confidence: 99%

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

2019

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“…Crowdfunding is a growing area of interest among practitioners and theorists (see, e.g., Ahlstrom et al (2018)). It is especially important for small businesses, innovative businesses and start-up businesses because for them financing is a crucial factor of success.…”

Section: Discussionmentioning

confidence: 99%

Crowdfunding in a Competitive Environment

Miglo

2020

JRFM

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Crowdfunding has mostly been used to finance very unique projects. Recently, however, companies have begun using it to finance more traditional products where they compete against other sellers of similar products. Major crowdfunding platforms, Kickstarter and Indiegogo, as well as Amazon have launched several projects consistent with this trend. This paper offers a model where two competing firms can use crowdfunding prior to direct sales. The model provides several implications that have not yet been tested e.g., (1) Firms can use crowdfunding strategically to signal a high level of demand for their products; (2) (Reward-based) crowdfunding is procyclical; (3) A higher platform fee may lead to higher firm profits in equilibrium; (4) Competition increases the chances of using crowdfunding compared to the monopoly case; (5) A non-monotonic relationship exists between the risk of crowdfunding campaign failure and firm profit.

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“…In May 2017, the SEC chairman mentioned the usage of the term coin/token does not circumvent the fact that capital is eventually raised from the public, classifying it as a security and not a currency (Roberts 2018). 2 The scale of these fintech marketplace developments clearly creates new avenues for entrepreneurial financing but also for financial fraud (Ahlstrom et al 2018a). Thus, in this paper, we explain the current issues and overview some of the regulatory developments and highlight current regulatory uncertainty.…”

Section: Introductionmentioning

confidence: 99%

“…Entrepreneurs benefit from the creation of transparent and accountable supply chains, and the reduction of background checks for identity verification. Perhaps most importantly for entrepreneurs, several barriers to entry for individuals and firms with good, but unfunded ideas are further lowered as they have been in recent years with the new, less regulated methods of raising capital and seeking financing (Ahlstrom et al 2018a).…”

Section: Introductionmentioning

confidence: 99%

Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty

Cumming

Johan

Pant

2019

JRFM

Self Cite

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Distributed ledger technology, also known as the blockchain, is gaining traction globally. Blockchain offers a secure validation mechanism and decentralized mass collaboration. Cryptocurrencies make use of this technology as a new asset class for investors worldwide. Cryptocurrencies are being used by companies to raise capital via initial coin offerings (ICOs). The substantial inflow of unregulated capital into a transactional and transnational industry has aroused interest from not just investors, but also national securities and monetary regulatory agencies. In this paper, we review the Security and Exchange Commission’s initial statements and subsequent pronouncements on ICO’s to illustrate the potential problems with applying an older legal framework to an ever-evolving ecosystem. Recognizing the inability of enforcement within existing regulatory frameworks, we discuss the importance of regulation of the crypto asset class and internal collaboration between government agencies and developers in the establishment of an ecosystem that integrates investor protection and investments.

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New methods of entrepreneurial firm financing: Fintech, crowdfunding and corporate governance implications

Cited by 71 publications

References 28 publications

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

How Does Financial Literacy Promote Sustainability in SMEs? A Developing Country Perspective

Crowdfunding in a Competitive Environment

Regulation of the Crypto-Economy: Managing Risks, Challenges, and Regulatory Uncertainty

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