Heliyon (Aug 2023)
Will investors move their investment from bank deposits and stocks/bonds to equity crowdfunding?
Abstract
This study aims to identify the effect of project-related and investor-related variables on Indonesian investors' intention to switch their investments from bank time deposits or company's stocks/bonds to equity crowdfunding. Project-related variables are business viability and financial return, while investor-related variables are trust, project attachment, liking, and investors' age. In recent years, research on the success factors of an equity crowdfunding campaign has increased. However, limited studies evaluate whether investors are willing to switch their investments from more known instruments such as bank time deposits and companies' stocks/bonds. Also, there is limited research set in developing countries such as Indonesia. This study used the primary data we collected using a self-filled closed questionnaire distributed online. After removing the unqualified data, we generated 114 data points to analyze. Data were processed using multiple linear regression. We found that the financial return variable positively and significantly affects investors' willingness to switch their investments from bank deposits and stocks/bonds to equity crowdfunding. We also found that the trust variable significantly affects investors' intentions to switch funds from bank deposits but there is not enough evidence that investors will switch funds from stocks/bonds to equity crowdfunding. Meanwhile, there is not enough evidence that other investor-related variables (project attachment, liking, and investor age) affect investors' intention to switch investments from banks' deposits or from stock/bonds to equity crowdfunding.
