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

Open Access Journal

ISSN: 2225-8329

Equity Crowdfunding in The Digital Age: Evaluating The Impact on Firm Performance in The Malaysian Context

Siti Fatimah Mohd Kassim, Zurina Shafii, Siti Noradibah Md Zain, Bayu Arie Fianto

http://dx.doi.org/10.6007/IJARAFMS/v14-i1/20700

Open access

Business-related entities' competency to manipulate existing resources and seize available opportunities is advantageous in ensuring the business's continued expansion, competitiveness, and sustainability. Small and medium-sized businesses often face financial constraints. Equity crowdfunding (ECF) has expanded Malaysian alternative financing. Since 2015, 77 issuers have obtained ECF financing. ECF digital platforms (PP) let fundraisers raise funds, and investors profit in the ECF ecosystem. This research focuses on the ECF ecosystem using the PP. The hypothesis claims that PP improves business performance. Financial metrics (Model 1) and customer performance (CP) (Model 2) track this performance. Because it depends on the past, financial performance evaluation cannot guarantee a firm's future sustainability. Thus, measuring performance based on current and future client performance may benefit the organization. This study used quantitative methods with 231 participants. 101 respondents, representing 77 issuers who raised ECF money, completed digital surveys. This work uses the Theory of Financial Bricolage as a foundation. This study evaluated the data using SPSS 20.0 and Smart-PLS 3.0. The results show that the PP significantly affects issuers’ performance. The hypothesis claims that PP improves business performance. Financial metrics (Model 1) and customer performance (CP) (Model 2) track this performance. Because it depends on the past, financial performance evaluation cannot guarantee a firm's future viability. Thus, measuring performance based on current and future client performance may benefit the organization. This study used quantitative methods with 231 participants. 101 respondents, representing 77 issuers who raised ECF money, completed digital surveys. This work uses the Theory of Financial Bricolage as a foundation. This study evaluated the data with SPSS 20.0 and Smart-PLS 3.0. The results show that the PP significantly affects issuers’ performance.

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(Kassim et al., 2024)
Kassim, S. F. M., Shafii, Z., Zain, S. N. M., & Fianto, B. A. (2024). Equity Crowdfunding in The Digital Age: Evaluating The Impact on Firm Performance in The Malaysian Context. International Journal of Academic Research in Accounting Finance and Management Sciences, 14(1), 972–996.