Title: Encouraging investment in SMEs through equity-based crowdfunding

Authors: Antonella Francesca Cicchiello; Daniele Leone

Addresses: Department of Economics, Management and Institutions, Federico II University of Naples, Corso Umberto I, 40, 80138 Napoli NA, Italy ' Department of Accounting, Management and Economics, Parthenope University of Naples, Via Generale Parisi, 13, 80132 Naples, Italy

Abstract: This paper examines the role may be played by the national policymakers in developing equity crowdfunding markets through a proper implementation of European Directives on this field. We analyse all directives and communications dealing with crowdfunding issued by the European Commission from 2000 to 2018. Then, we compare and assess their impact on the national legislation of the analysed countries. Results show that countries which have correctly and fully transposed into law the European Directives - without any infringement or delays - by aligning their national regulations with European objectives (e.g., the UK) are able to avoid destabilising phenomena of regulatory arbitrage. Countries with delayed and incorrect transposition and/or wrong application of the directives (e.g., France, Italy, and Spain) are currently facing serious destabilising effects of international financial markets with modest growth of equity crowdfunding markets. This paper draws attention to the ongoing process of Europe-wide equity crowdfunding regulatory convergence.

Keywords: equity crowdfunding; national policy makers; regulation; European Directives.

DOI: 10.1504/IJGSB.2020.109553

International Journal of Globalisation and Small Business, 2020 Vol.11 No.3, pp.258 - 278

Received: 09 May 2019
Accepted: 19 Sep 2019
Published online: 15 Sep 2020 *

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