How issue-relevant information and peripheral cues shape investment decisions in equity crowdfunding

Abstract Equity crowdfunding has received growing popularity as an innovative financing model. However, despite its growth, the average success rate of campaigns remains low. The digital nature of this model introduces unique challenges, including high information asymmetry, limited interaction and the absence of intermediaries. Previous studies mostly focus on the rational, direct impacts of information signals, few explore both rational and heuristic aspects and their interplay in influencing campaign outcomes. This research, using the elaboration likelihood model, analyses data from 285 equity crowdfunding campaigns to examine the direct and interactive influence of issue-relevant information and peripheral cues on campaign success. The findings demonstrate the significance of both issue-relevant information (i.e., team quality and innovativeness) and peripheral cues (i.e., readability and assurance) on equity crowdfunding success. In particular, the results reveal new insights into the interactions between these factors. The study offers implications for crowdfunding platforms and entrepreneurs, directing strategies to effectively manage information to enhance equity crowdfunding outcomes.