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Is Blending Fintech With Traditional Finance a Top-Shelf Blend or a Sour Mix? Evidence From the Ownership of Equity Crowdfunding Platforms

Author

Listed:
  • Luca Farè
  • Michele Meoli
  • Armin Schwienbacher
  • Silvio Vismara

Abstract

Digital finance platforms are disrupting traditional financial entities (FEs). Yet, FEs increasingly invest in their ownership. We investigate whether FE ownership creates a “top-shelf blend†that enhances platform performance or a “sour mix†that undermines it. We integrate legitimacy theory and organizational identity theory to theorize an inverted U -shaped relationship between FE ownership and the performance of equity crowdfunding (ECF) platforms. A longitudinal analysis based on 306 ECF platforms demonstrates that FE ownership enhances performance up to a certain point, after which performance declines. The legitimacy of FEs owning ECF platforms moderates this relationship.

Suggested Citation

  • Luca Farè & Michele Meoli & Armin Schwienbacher & Silvio Vismara, 2026. "Is Blending Fintech With Traditional Finance a Top-Shelf Blend or a Sour Mix? Evidence From the Ownership of Equity Crowdfunding Platforms," Entrepreneurship Theory and Practice, , vol. 50(3), pages 722-756, May.
    • Handle: RePEc:sae:entthe:v:50:y:2026:i:3:p:722-756
    DOI: 10.1177/10422587251388013
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