Exploring the impact of initial herd on overfunding in equity crowdfunding

Yijing Li, Fei Liu, Wenjie Fan, Eric T.K. Lim, Yong Liu

Research output: Journal article publicationJournal articleAcademic researchpeer-review

15 Citations (Scopus)


Outcome of equity crowdfunding campaigns often exceeds original fundraising goals, leading to market inefficiency. This undesirable phenomenon of overfunding garnered little attention in past studies. Synthesizing extant literature on crowdfunding and herding, we identified the initial herd made visible by funding progress indicator as the main cause of overfunding. The impact of the initial herd can be quantified by three dimensions: maturity, intensity, and persistency. We then advance and validate a research model for examining how dimensions of the initial herd affect overfunding in equity crowdfunding. Findings from this study can shed light on plausible remedies for the overfunding issue.

Original languageEnglish
Article number103269
JournalInformation and Management
Issue number3
Publication statusPublished - Apr 2022
Externally publishedYes


  • Crowdfunding
  • Herd
  • Herding behavior
  • Overfunding

ASJC Scopus subject areas

  • Management Information Systems
  • Information Systems
  • Information Systems and Management


Dive into the research topics of 'Exploring the impact of initial herd on overfunding in equity crowdfunding'. Together they form a unique fingerprint.

Cite this