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: Contribution to journalArticleScientificpeer-review

17 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
Pages (from-to)1-10
Number of pages10
Issue number3
Early online date15 Jan 2020
Publication statusPublished - Apr 2022
MoE publication typeA1 Journal article-refereed


  • Crowdfunding
  • Herd
  • Herding behavior
  • Overfunding


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