Successful Financing Research Articles

Exploring financing models for clean energy adoption: Lessons from the United States and Nigeria

This paper examines financing models for clean energy adoption, drawing insights from experiences in the United States and Nigeria. It underscores the significance of clean energy and the need to explore effective financing mechanisms to facilitate its widespread adoption. Through an analysis of the current state of clean energy adoption in both countries, existing initiatives and challenges are outlined. Lessons gleaned from successful financing models in the United States, including government incentives, public-private partnerships, and renewable energy credits, are then explored. These lessons serve as a foundation for assessing how similar approaches can be adapted to the Nigerian context. Specific attention is given to the unique challenges facing Nigeria, such as infrastructure limitations and socioeconomic disparities, and how financing models can be tailored to address these obstacles. A comparative analysis between the two countries identifies similarities, differences, and the potential transferability of financing models. Based on these insights, recommendations are proposed for Nigeria, emphasizing the importance of context-specific approaches to accelerate clean energy adoption. Overall, this paper provides a comprehensive exploration of financing models for clean energy adoption, offering valuable insights for policymakers, stakeholders, and practitioners in both the United States and Nigeria.

The impact of supply chain finance on supplier stability: The mediation role of corporate risk-taking

Supply chain finance is an effective mechanism to alleviate informational asymmetry between banks and SMEs and facilitate successful financing. C ompanies are becoming increasingly aware that maintaining close relationships with stable suppliers is crucial for the efficient development of supply chain finance. This study, based on a sample of Chinese listed companies from 2010 to 2022, examines the relationship between supply chain finance, supplier stability, and corporate risk-taking. The findings indicate that: 1. Supply chain finance positively influences supplier stability; 2. Corporate risk-taking mediates the relationship between supply chain finance and supplier stability; 3. Heterogeneity analysis reveals that the impact of supply chain finance on supplier stability is more pronounced in western regions and non-heavy pollution industries.

HOW DOES INFORMATION DISCLOSURE OF CRYPTOCURRENCY WHITEPAPER AFFECT INITIAL COIN OFFERING FUNDRAISING SUCCESS?

ABSTRACT The main function of the initial coin offering (ICO) whitepaper is to eliminate the impact of information mismatch between investment and financing parties. Based on signaling theory, this study analyzes the factors that affect the success of ICOs. To analyze the impact of the disclosure of whitepapers on successful ICO fundraising, the whitepaper information is classified into four directions: fundraising characteristics, project characteristics, human capital, and social capital. At the same time, supplement the ICO project information regarding each cryptocurrency with public information on their official website and social media, ensuring the timeliness and integrity of the analyzed data. Analyze the impact of disclosure on the success of an ICO by constructing a logistic regression model. Due to the two extremes of regulation for cryptocurrency in different countries, either their registration is forbidden or the absence of regulation, resulting in the lack of uniform standards for the information disclosed in the whitepaper, and it is difficult to distinguish between true and false. Low-quality information disclosure has little impact on the successful financing of ICOs and has limited reference value to cryptocurrency investors and investors alike.

Anchor investors and equity crowdfunding for entrepreneurs

PurposeThis empirical study uses herd behavior model to explore the role of anchor investors in ensuring fundraising success and overfunding of crowdfunded ventures.Design/methodology/approachQualitative comparative analysis (QCA) is applied to find the configurational patterns describing how anchor investors' information disclosure leads to successful financing and overfunding.FindingsEven when the anchor investor's resume is not detailed or the anchor investor has little experience in entrepreneurial investment, success or overfunding can be achieved, provided the anchor investor is a corporation rather than an individual. For individual anchor investors, a detailed resume matters. Overfunding can be achieved even when an individual anchor investor makes a small relative investment, if this small relative investment is compensated for by a detailed resume. Experience in entrepreneurial investment is crucial when individual anchor investors have few previous investments. Regardless of the anchor investor's identity, investment in absolute terms is crucial for crowdfunding success when experience in entrepreneurial investment is low. Such experience must be extensive if the anchor investor's resume is not detailed.Practical implicationsBoth entrepreneurs and crowdfunding platforms can benefit from the findings in relation to the design of campaigns that use anchor investors' informational cues to achieve success and overfunding.Originality/valueThe study examines the importance of anchor investors' information disclosure in digital crowdfunding environments, differentiating between individual and corporate anchor investors.

Assessment of the role of renewable energy financing and information and communication technology in carbon neutrality: evidence from RCEP economies.

Understanding the correlation between the various forms of financing and their propensity to invest in renewable energy (RE) innovation is crucial for its successful financing. We investigate the "path" taken by innovators in the financial sector. The UN Secretary-General announced the Sustainable Energy for All Initiative in 2012 to ensure that all people can access reliable, modern energy services by 2030. Substantial monetary and technological investments at a rate much surpassing historical levels are required to accomplish this goal. This research is aimed at determining if the combination of REF and ICT may help improve environmental quality. Using econometric methods, we examine time series data from RCEP economies from 2000 to 2019. This study describes another determinant of carbon emission: economic growth, tourism, and trade openness. The study employs Cup-FM and Cup-BC tests to check the results of variables in this study. The effect of economic growth, tourism, and trade significantly positively impacts carbon emissions in this model. However, renewable energy finance and ICT adversely impact the carbon emission level. Moreover, the moderate effect of renewable energy finance on information and communication technology, tourism, and trade is found to have a negative impact on carbon emissions. The policy recommendations suggest how a country can minimize carbon emissions.

Home bias in reward-based crowdfunding and its impact on financing performance: Evidence from China

In order to investigate the role of home bias in reward-based crowdfunding, we collect data of 3,284 projects from the Modian, a major crowdfunding platform in China, and conduct an empirical analysis. First, we confirm the existence of home bias in reward-based crowdfunding from three different perspectives: (1) visualizing the ratio of local investors with descriptive statistics, (2) testing the effect of geographic location with Logistic regression analyses, and (3) measuring the effect of creators’ moves with a quasi-experimental design. Second, we find that home bias matters for financing performance. Its positive impact may be negatively moderated by good information disclosure. Our findings have important implications for the successful financing of projects and the development of crowdfunding platforms.

Role of social capital in reducing the level of non-performing loans

In various studies, social capital is believed to be the answer to problems related to loan repayment problems. The purpose of this study was to find out the reasons for the successful financing of the Mawar Emas program in reducing NPF numbers in West Nusa Tenggara. The author interviewed MES secretaries, mosque administrators, beneficiaries, NTB Sharia Banks, and academics from several universities using a qualitative descriptive method. To support these data, the authors obtained a two-year payment document for the Mawar Emas program. This study found that Mawar Emas financing does not burden customers because of small dependents, the group leader is responsible for collecting and paying debts to the NTB Sharia Bank, NTB Sharia Bank and the Islamic Economic Community (MES) to train and assist mosques and fund recipients, MES and mosques collaborate to hold bazaars for debtor businesses to increase their profits.

Crowdfunding as Financing Tool of Semi-professional Sports Clubs: Evidence on Funders’ Preferences and Typologies

Due to the official regulatory credit screening procedures of Basel II and Basel III in Europe, credit is now more difficult to obtain. As a consequence, alternative financial mechanisms, such as crowdfunding, that focus on sports clubs’ supporters have become more important. The aim of the present study is to evaluate crowdfunding related to sports clubs using a choice-based conjoint analysis (CBCA) to detect project- and participant-related success factors in successful financing. Therefore, two fictitious crowdfunding projects with the offered return and the price are chosen as features and two German sports clubs – one ice hockey club and one football club – are selected for the analysis. Using segmentation techniques, the study also examines the types of crowdfunders and their preferences. The results show that the offered return and the price are the two most important features for potential crowdfunders. They prefer either a club-related return containing a certain economic value or the donation as representative of a more altruistic return. The findings also indicate that crowdfunding can be a financial instrument for both semi-professional and professional clubs. Keywords: crowdfunding, financial instrument, sports clubs, semi-professional clubs, professional clubs

Managing the external financing constraints of social enterprises: A systematic review of a diversified research landscape

AbstractSocial enterprises, located between non‐profit organisations and for‐profit firms, often struggle to acquire external funding. An increasing amount of research on the external financing of social enterprises stems from a fragmented body of the literature anchored in a variety of subject areas (e.g. entrepreneurship, public sector management, general management and strategy). We systematically review 204 academic articles published between 1998 and 2021 to bridge the knowledge gaps in these subject areas by: (1) mapping the field of the external financing of social enterprises at the individual, organisational and institutional levels; (2) synthesising the findings to develop an overarching framework; and (3) discussing theoretically sound future research avenues. We find that research at the individual level focuses primarily on investors’ perspective of the ideal characteristics of a social entrepreneur. Research at the organisational level often addresses the dual logics of social enterprises and their impact on the successful financing of these businesses and the role of investor–investee collaboration. Research at the institutional level can be clustered into cultural, economic, political and legal factors. Overall, we stress the need for research that adopts an overarching view by considering all three levels of analysis simultaneously and using organisational and economic theories.

Study on Enterprise Financial Risk Prevention and Early Warning System Based on Blockchain Technology

To address the challenges of financing SMEs, breaking the limitations of traditional financing models, a blockchain-based financial risk prevention and early warning system for businesses has been proposed and an in-depth study of the system has been undertaken. As a scientific and technological means to strengthen the disclosure and sharing of information such as credit records and risk early warning, The key to getting financial institutions to lend to SMEs is to avoid financial credit risk in the value chain. Considering SMEs located in supply chains as an object of study, using the logical relationships between block chains and financial credit risk management chains, three principles of supply chain management are proposed by analyzing the logical relationships between supply chains and financial credit control chains. Chain using blockchain technology, namely: the principle of recognizing the trust of major enterprises, the principle of sharing information about the financing process and the principle of general cooperation for successful financing. Based on this principle, an evolutionary game model is used to analyze the evolutionary path of endorsement fiduciary relationships between major enterprises and SMEs, the influencers of evolutionary equilibrium, the evolutionary path of cooperation between commercial banks and SMEs in financing, the evolutionary path under the control of third-party institutions, and influencers. The research shows that the financing activities of commercial banks and small and medium-sized enterprises are based on the trust endorsement of core enterprises in the supply chain, and the intervention of third-party regulators will help to promote the consistent cooperation and information sharing of all participants in the supply chain, so as to promote the smooth completion of supply chain financing.

Reward-Based Crowdfunding : How to Make it Work?

The paper aims to identify attributes having a significant impact on the successful financing of crowdfunding campaigns published on the largest crowdfunding platform based on reward models in the Czech Republic. The paper’s motivation arises from the theoretical background of crowdfunding and related empirical research, where crowdfunding based on rewards is analysed. The paper aims to identify the determinants of the success of selected crowdfunding projects using logistic regression analysis. Results of the logit estimation show that the number of fans on the campaign’s Facebook page, the use of video in the campaign and the size of the campaign’s financial goal have a significant impact on the campaign’s success. The last part of the paper also includes the limitations of the performed analysis and suggestions for further analysis of crowdfunding.

Performance Analysis of Indie Gaming Projects on Crowdfunding Platforms: Evidence from Kickstarter.com

Research question: The aim of this paper is to examine the financial success of projects in game development industry in comparison with to projects in other industries hosted on crowdfunding platform Kickstarter.com. Motivation: We live in the world of technology where companies arise and disappear on daily basis. The traditional way of financing was expanded with alternative online platforms. Our goal was to conduct an empirical analysis of one crowdfunding platform (Kickstarter.com) in order to understand if technology projects are doing better than other projects. If they do, what are the key factors for their success? Idea: Our goal was to better understand how crowdfunding model supports small indie development projects and projects in other industries. Data: We used the data of 148.510 companies applied for crowdfunding financing between 2015 and 2020, published on the web crawler platform Web Robots. Tools: All statistical analyses were performed using statistical software IBM® SPSS® Statistics v.21. The data were presented using standard methods of non-parametric descriptive statistics (absolute and relative frequencies for medians and interquartile ranges for numeric outcomes). For testing of statistical significance of difference between two groups we used the Pearson´s Chi-Quadrat test and Mann-Whitney test, where appropriate. The effect size for the 2x2 analyses was estimated using Odds ratios. Findings: The paper analyses the financial success of gaming and not gaming projects and tries to identify key factors for successful funding. We found a statistically significant higher prevalence of successful financing in game development projects, with 2.3 times higher odds of successful funding compared to not-gaming industry. Our analysis of quantitative indicators such as the number of backers, goal amount, pledged amount, pledged amount per backer and pledged to goal ratio also showed that projects in game development statistically outperformed projects in other categories. Promising game projects were supported by three times more backers on average and attained almost as double funds as other projects, while still sporting more modest pledged amounts per backer. These findings support the notion of crowdfunding being a viable modality of financing independent game development in emerging economies. Contribution: This paper expands the existing research related to the crowdfunding platforms and indie development companies and formulates key factors for successful financing for technology startup firms.

Challenges and critical success factor of P2P lending for SMEs in Malang

The development of digital business and telecommunications has become increasingly rapid, in the last 10 years. The use of digital technology, which is growing rapidly, has also changed the perspective of society as a whole in interacting socially and has even fundamentally changed the industrial sector, especially the banking and financial industry. The presence of financial technology, where the financing process is carried out using digital economic tools known as P2PL (Peer to Peer Lending). The existence of this financing service product is believed to be able to provide a solution to increase the financial inclusion index. Based on these conditions, researchers are very interested in researching and revealing what are the challenges and tips for successful financing processes for SMEs. From the results of this study, it has a contribution to stakeholders in the future related to making decisions on P2PL financing products in particular so that they are better known to the public and successful in their distribution.

An Innovative Conceptual Model to Structure Financing Package of Infrastructure Projects

Understanding the correct way to determine the financing package for infrastructure projects, identifying proper processes, resources, techniques, and instruments to realize successful financing approaches, and private sector participation in providing development infrastructures are irrefutable. The main purpose of this study is to present a comprehensive model covering these complex issues. To this end, using the library studies, receiving expert opinion, and recognizing international financing processes, information was gathered on this subject; therefore, in this paper, the model of designing financing package for infrastructure projects is processed and identified, and designing the financing structure is closely related to the ownership structure of the project and its guaranteed package. These will change in a repeatable process until the end of the preparation phase and sometimes in project steps. The ownership of the infrastructure projects is determined by this repeatable process, which defines initial sponsors, costs, and benefits for partners, types of financial instruments, and techniques and evaluates risks and capital structure. In this paper, we suggest a model to help practitioners more effectively and systematically finance infrastructures. The development of guidelines and information resources in this field is one of the effective measures to build capacity and eliminate possible ambiguities and misunderstandings about public-private partnership.

Application of green financing of green economy in Russia

In our study, from a theoretical and practical standpoint, the directions of green financing in various elements of the green economy were analyzed. In Russia, by the beginning of 2015, the portfolio of investment projects in the field of renewable energy sources amounted to more than 100 billion rubles. Until 2025, the Ministry of Natural Resources intends to attract about 3.5 trillion rubles in the development of renewable energy sources. In January 2019, the national project «Ecology» was approved in Russia, where 19.9% is government funding, the rest is a great potential for the development of green financing for all 11 Federal Projects, especially BAT. The article presents successful green finance projects in Russia and abroad.

Fueling Spin-offs: Case Studies of University-based Technology Start-up Funding

The new technologies born from academic research can be very promising, yet they are often very early stage. University spin-off companies are uniquely positioned to tackle the risks associated with new technologies emerging from academia by developing proofs of concept, functioning prototypes, and new products. While these enterprises start from a solid research and development foundation, they face their own unique set of challenges—they are strongly anchored in the scientific and technological expertise that is typically backed by intellectual property but often lack the business experience needed to develop and market products demanded by customers. University spin-offs have access to substantial non-dilutive funding that can be utilized for advancing product development. While the relentless pursuit of these funds builds a company's credibility and improves its position for negotiating future private investment, university spin-offs would greatly benefit from an early focus on complementing their technology teams with their business teams. These new enterprises should consider pursuing private investment in parallel to utilizing sources of non-dilutive funding. Timing of private investment is extremely important to maximize the value of the opportunity, and, therefore, building relationships with investors early on and getting ready for executing an investment round can greatly increase odds for success. While there is no single path to formulate, pursue, and adapt successful financing strategies, lessons can be learned from real-life cases of university spin-offs that continue their journeys towards ultimate success.

Results Based Financing in Zambia: Performance Evaluation and Exploration of Opportunities in Health System Adoption

Background–Results Based Financing has strategically fit into discussions of the Universal Health Coverage agenda at global level with the aim of meeting the Sustainable Development Goals. It has been viewed that Results Based Financing is a potent financing model and can be used as a strategic tool for remodeling the health systems in many developing countries as suggested by prior studies which argued that Results Based Financing implementation requires: (i) a strong management support and political will; (ii) maximum innovative efficiencies and willingness for change; and (iii) strengthened health management information and reporting systems. Therefore, this study aimed at understanding how Results Based Financing approaches can be scaled-up by exploring the Successes, Challenges and Opportunities of adopting it into the health system from its project form.Methods -A case study design was used for this research with a quantitativedata collection approach. Data was analyzed using SPSS version 22.Results-The Results Based Financingprogramme improved all the indicators targeted in Lunte District Health facilities. The successes of the project included improved quality of health care services and strengthened health system. A notable challenge for Results BasedFinancing implementers was poor performance of non-incentivized indicators compared with the incentivized. However, an opportunity was seen with the project in that other financing models were discussed to either mimic or simply use Results Based Financing tools, pool funds in one basket and apply the concept. Results Based Financing improved efficiency and effectiveness based on results that health facilities learnt how to manage funds, shown by 67% of respondents, and commitment to re-investment 60% of their bonuses back into the system.Conclusion-Results based financing can be regarded as a model for harmonizing other donor funds and drive forward the financial sustainability of being a successful financing strategy for the health sector

ОСНОВНІ МОДЕЛІ ТА СВІТОВИЙ ДОСВІД ФІНАНСУВАННЯ ПРОФЕСІЙНОЇ ОСВІТИ

The article considers the main framework and models of financing vocational education and training (hereinafter – VET). The analysis of the best practices of financing VET is carried out, the main tasks and challenges to which the chosen model of financing should respond are defined. It is established that depending on the main source of funds, there are three groups of models of financing VET: models that use mainly national (central) budget funds, models that use mainly local budget funds, models that use a uniform combination of public and private funds. The allocation of public funds can be based on criteria set by the government in each situation, determined by the financing formula, or on a competitive market basis. In order to effectively involve employers in the process of providing VET, a dual system of training is gaining more and more development, in which the theoretical part of training based on vocational education institutions is financed by the state, and the practical part is financed directly by employers. The best practices show that an adequate model of financing VET can improve the quality of educational services provided. Requirements for receiving funds create incentives for educational institutions to improve the quality of services provided. In general, in the OECD countries, funding is provided per student from the state budget and additional targeted direct funding from the local budget. The main requirement for receiving funds from the state is the efficiency of their use, which in this case is measured as a high level of training of as many applicants for educational services. Our analysis has shown that successful financing models must be based on consistent principles, be transparent and simple, as complex funding frameworks lead to a loss of openness and distortions in the allocation of funds.

Activity Sequencing in Startups

Activity prioritization in early-stage startups is at the heart of entrepreneurial strategy. In this paper, I investigate the sequence of startup activities over time to understand the mechanisms underlying this prioritization. I develop a novel activity typology using a rich database of 371 early-stage, science-based startups. Exploiting the variation between activities proposed by founders of startups and separately by a group of exited entrepreneurs and venture investors (mentors), I report under-emphasis of search and analysis activities by founders. I also show mentors' prioritization of learning is associated with the startup's stage and is not blanket advice. By invoking a recent literature in economics, I argue that the observed misalignment between mentor' and founders' sequencing of activities suggests a gap in judgment, and show that this gap is wider between mentors and startups led by first-time entrepreneurs than between mentors and startups led by entrepreneurs with prior founding experience. Finally, I develop and test the hypothesis that sequencing activities in early-stage startups from learning to implementation of ideas and acquisition of resources is predictive of securing successful financing.

Predicting the success of entrepreneurial campaigns in crowdfunding: a spatio-temporal approach

As an alternative to traditional venture capital investment, crowdfunding has emerged as a novel method and potentially disruptive innovation for financing a variety of new entrepreneurial ventures without standard financial intermediaries. It is still unknown to scholars and people who use crowdfunding services whether the crowdfunding efforts reinforce or contradict existing theories about the dynamics of successful entrepreneurial financing as well as the general distribution and use of crowdfunding mechanisms. This paper presents new results obtained from investigating the Kickstarter campaign data of over ninety-nine thousand projects totaling about 1 billion USD in pledges from 2009 until the most recent 2017 through dynamical spatio-temporal modeling. The funding level, the percentage of a project’s goal actually raised from online communities, is used as the outcome of interest in the modeling to associate with dollar pledged and backer count that reflect the signals of underlying project quality. Evidence from the results was found to support the dynamic impact of the geographic location of a Kickstarter on its success and the associations between the observed project traits and the success of the entrepreneurial effort in the presence of the unmeasured spatio-temporal confounding. These results offer further insight into the empirical dynamics of the emerging phenomenon of online entrepreneurial financing about the role the spatio-temporal component plays in both the type of projects proposed and the association of sociocultural traits of successful fundraising with the underlying quality.