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Lead investors and information disclosure: A test of signaling theory by fuzzy‐set qualitative comparative analysis approach

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  • Yaokuang Li
  • Li Ling
  • Daru Zhang
  • Juan Wu

Abstract

This article aims to examine the complexity of lead investor's signaling by information disclosure in equity crowdfunding. We use 40 samples from a Chinese equity crowdfunding source to explore why lead investor influences followers' decision making and how lead investor signals effectively by using fuzzy‐set qualitative comparative analysis (fsQCA) approach. Our findings enrich the literature on the lead investors and syndicate by testing the complexity of signaling in equity crowdfunding, shed new light on investigating the decision‐making model of individuals at a disadvantage of information asymmetry, and offer insights into signaling strategically online.

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  • Yaokuang Li & Li Ling & Daru Zhang & Juan Wu, 2021. "Lead investors and information disclosure: A test of signaling theory by fuzzy‐set qualitative comparative analysis approach," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 42(4), pages 836-849, June.
    • Handle: RePEc:wly:mgtdec:v:42:y:2021:i:4:p:836-849
    DOI: 10.1002/mde.3276
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