Financial literacy and security?based crowdfunding

Research Question/Issue This study investigates the relationship between financial literacy and survival profile of security?based crowdfunding platforms. Security?based has recently emerged as a novel market that allows small investors to engage directly in financing entrepreneurial ventures. However, certain level is required understand manage these digital finance tools. A better understanding impact is, therefore, central development markets achievement their inclusive potential. Research Findings/Insights Using data universe 432 platforms 37 OECD countries from 2007 2019, we find higher platforms' profiles where high. Financial literacy, however, needs combine with specific platform characteristics take full effect, it matters more those deliver voting rights provide poorer value?added services investors. Theoretical/Academic Implications This provides empirical support role governance mechanisms at for differences across countries. As such, contributes literature both on corporate governance. Additionally, extends previous research level. Practitioner/Policy calls attention policymakers interested markets. The importance varies presence information production platform?level.