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This paper introduces crowdfunding as a concept and model for the evolution of investment banking. Crowdfunding, an … application of crowdsourcing, is defined as one party’s attempt to finance a project by offering three types of investment … opportunities to potential investors. The investment opportunities are donations, passive investments, and active investments. From …
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Watts (2003) and Ball and Shivakumar (2005) argue that accounting conservatism decreases managerial incentives to make negative net present value investments. I develop and test a new hypothesis that accounting conservatism is associated with managers making less risky investments. I find that...
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