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

Open Access Journal

ISSN: 2225-8329

Factors that Motivate Potential Investors to Backed Issuer of Equity Crowdfunding: A Proposed Framework

Djasriza Jasin, Ramila Devi Ram Sing, Hanita Sarah Saad

http://dx.doi.org/10.6007/IJARAFMS/v15-i1/24146

Open access

Equity Crowdfunding (ECF) has emerged as a significant alternative financing for startup business around the world. Offering new ways of investing while changing the financing landscape, ECF is praised as it offers a more democratize access to capital. The novelty of ECF however is jeopardized by the low participation rate among investors. Hence investigating investors' motivation that drives their attitude and intention to invest in ECF is essential. ECF is still an under-researched area despite its rising popularity. This study aims to identify the key factors influencing Investors attitude and its influence on intention to contribute to ECF. A conceptual framework is proposed for this study, underpinned by Signaling Theory and Theory of Planned Behavior. The intention to invest in an ECF platform serves as the dependent variable within this framework. The proposed framework aims to provide valuable insights to platform providers, ECF issuers and policymakers. This understanding of investor behavior prior to investment could contribute to the growth and sustainability of ECF in Malaysia.

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Jasin, D., Sing, R. D. R., & Saad, H. S. (2025). Factors that Motivate Potential Investors to Backed Issuer of Equity Crowdfunding: A Proposed Framework. International Journal of Academic Research in Accounting, Finance and Management Sciences, 15(1), 403–412.