The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market

ABSTRACT This study looks at the impact of the management's forecasts aggressiveness on successful equity crowdfunding. Expected sales growth rate and forecasting earnings growth rate are seen as indicators of aggressive management forecasts. By analyzing 127 successful crowdfunding companies...

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Main Author: Wang, Qingman
Format: Dissertation (University of Nottingham only)
Language:English
Published: 2018
Online Access:https://eprints.nottingham.ac.uk/54344/
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author Wang, Qingman
author_facet Wang, Qingman
author_sort Wang, Qingman
building Nottingham Research Data Repository
collection Online Access
description ABSTRACT This study looks at the impact of the management's forecasts aggressiveness on successful equity crowdfunding. Expected sales growth rate and forecasting earnings growth rate are seen as indicators of aggressive management forecasts. By analyzing 127 successful crowdfunding companies on the UK CorwdCube platform, the regression result shows that having more aggressive forecasted sales is less likely to attract investors and will also reduce the final fundraising. In addition, in this empirical analysis, there is a positive correlation between the aggressiveness of forecasting earnings and successful crowdfunding companies. Although the expected increase rate in earnings can only attract a small number of investors, it also encourages investors to invest enough funds. Therefore, there is a connection between this financial forecasting signal and the successful crowdfunding companies. It also means that management forecasts can, to a certain extent, convey signals to investors through self-disclosure. Hence, equity crowdfunding seems to require a tighter regulatory environment. Key Word: equity crowdfunding, management forecast, forecast aggressiveness. information asymmetry, investor behaviour, UK.
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spelling nottingham-543442022-07-14T14:55:16Z https://eprints.nottingham.ac.uk/54344/ The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market Wang, Qingman ABSTRACT This study looks at the impact of the management's forecasts aggressiveness on successful equity crowdfunding. Expected sales growth rate and forecasting earnings growth rate are seen as indicators of aggressive management forecasts. By analyzing 127 successful crowdfunding companies on the UK CorwdCube platform, the regression result shows that having more aggressive forecasted sales is less likely to attract investors and will also reduce the final fundraising. In addition, in this empirical analysis, there is a positive correlation between the aggressiveness of forecasting earnings and successful crowdfunding companies. Although the expected increase rate in earnings can only attract a small number of investors, it also encourages investors to invest enough funds. Therefore, there is a connection between this financial forecasting signal and the successful crowdfunding companies. It also means that management forecasts can, to a certain extent, convey signals to investors through self-disclosure. Hence, equity crowdfunding seems to require a tighter regulatory environment. Key Word: equity crowdfunding, management forecast, forecast aggressiveness. information asymmetry, investor behaviour, UK. 2018-12-01 Dissertation (University of Nottingham only) NonPeerReviewed application/pdf en https://eprints.nottingham.ac.uk/54344/1/wqm%20%E6%9C%80%E5%90%8E%E4%B8%80%E4%B8%AA%E6%9C%80%E7%BB%88%E7%89%88%E6%9C%AC%E8%AE%BA%E6%96%87.pdf Wang, Qingman (2018) The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market. [Dissertation (University of Nottingham only)]
spellingShingle Wang, Qingman
The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market
title The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market
title_full The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market
title_fullStr The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market
title_full_unstemmed The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market
title_short The relation between forecast aggressiveness and the success of equity crowdfunding based on the UK market
title_sort relation between forecast aggressiveness and the success of equity crowdfunding based on the uk market
url https://eprints.nottingham.ac.uk/54344/