We examine financing outcomes for small businesses seeking to sell public securities in a setting characterized by high information asymmetry, weak requirements for auditor participation, and a complete absence of the Big N auditors. Issuers that raise capital from small unsophisticated...

Crowdfunding aims to collect small investments from a large number of backers to support a project by fundraisers. Although uncertainty has been an important issue in the reward-based crowdfunding literature, there is limited research on how backers respond to probabilistic uncertain rewards....