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International Journal of Academic Research in Accounting, Finance and Management Sciences

Open Access Journal

ISSN: 2225-8329

Firm Performance and Online Platform: Evidence from Malaysia's Equity-based Crowdfunding

Siti Fatimah Mohd Kassim, Zurina Shafii

http://dx.doi.org/10.6007/IJARAFMS/v13-i1/16463

Open access

The ability of commercial entities to manipulate existing resources and track available prospects is advantageous in maintaining the business's continued expansion, competitiveness, and sustainability. Associated firms, particularly those involving small and medium-sized enterprises (SMEs), frequently face financial constraints. The introduction of equity crowdfunding (ECF) has given Malaysian alternative financing a new dimension. Since its launch in 2015, 77 issuers have successfully obtained ECF financing. The ECF ecosystem demonstrates the significance of ECF platforms (PP) in bringing together fundraisers to help SMEs raise capital and investors to realize investment benefits. As a result, the study focuses on the ECF ecosystem and looks at the ECF platform (PP) as an external resource. According to the hypothesis, PP has a positive impact on the firm's performance. Financial measurements (Model 1) and customer performance (CP) (Model 2) are used to track this performance. Because it is based on something that has passed, financial measurement for performance measurement is not very precise in ensuring the future viability of a firm. As a result, a mechanism that integrates performance measurement based on current and expected client performance might benefit the company's future performance. 231 respondents completed digital surveys, representing 77 issuers who successfully raised ECF funds between 2016 and 2019. This work merges RBV theory with Theory of Financial Bricolage as a foundation theory. SPSS 20.0 and Smart-PLS 3.0 were used for data analysis in this study. According to the findings, the PP has a significant impact on customer performance. This research also sets the path for future studies.

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In-Text Citation: (Kassim & Shafii, 2023)
To Cite this Article: Kassim, S. F. M., & Shafii, Z. (2023). Firm Performance and Online Platform: Evidence from Malaysia’s Equity-based Crowdfunding. International Journal of Academic Research in Accounting Finance and Management Sciences, 13(3), 412–438.