Examining Funders' Intention in Malaysian Equity Crowdfunding Platforms: Perceived Trust as a Mediator in an Extended Theory of Planned Behavior Framework (Indian Journal of Information Sources and Services)

Summary

• The study found that Perceived Trust has a strong positive influence on Intention (0.888).p.6
• Extrinsic rewards emerged as the strongest predictor of Perceived Trust (0.465).p.6
• Of 150 questionnaires distributed, only 76 were completed and usable.p.6
• Attitude (β = 0.172, p = 0.148) showed no statistically significant effect on Perceived Trust.p.9
• Perceived Trust significantly predicts Intention (β = 0.888, t = 34.144, p < 0.001).p.9
• The total amount raised in equity-based crowdfunding in Malaysia fell from 24 million to 15 million after 2017, and the number of campaigns fell from 22 to 14.p.2

Key insights

1. Malaysian donation-based crowdfunding collected a record USD 0.62 million at the start and USD 3.13 million in 2015, before declining to USD 1.68 million in 2016.p.2
2. Cronbach's Alpha was above 0.7 for all seven variables, indicating good internal consistency.p.8
3. The average variance extracted (AVE) was above 0.5 for all constructs.p.8
4. Variance inflation factor values were below the recognized cutoff of 5, showing no multicollinearity among predictors.p.8
5. The regulatory framework for equity crowdfunding in Malaysia was only introduced in 2015, leaving the industry in its infancy.p.9
6. Intrinsic Reward (β = 0.192, p = 0.101) and Perceived Behavioral Control (β = 0.114, p = 0.413) showed no significant effect on Perceived Trust.p.9