Author ORCID Identifier

Date Available


Year of Publication


Degree Name

Doctor of Philosophy (PhD)

Document Type

Doctoral Dissertation


Business and Economics



First Advisor

Dr. Monika Causholli

Second Advisor

Dr. Brian Bratten


Forward-looking disclosures (FLDs) play a critical role in traditional capital markets. However, evidence of their usefulness in settings with weak information environments, little to no operating history, nonprofessional investors, and lighter regulation is limited. This study sheds light on this critical issue and finds that FLDs are useful disclosures for raising capital in equity crowdfunding (ECF), and the presence of accounting information enhances FLDs relevance. I find that firms disclosing more FLDs raise more capital and attract a greater number of investors. More investors contribute to firms that disclose more quantitative FLDs, especially when the disclosures are accompanied by reviewed or audited financial statements. Contrary to prior evidence, firms with optimistic FLDs attract fewer investors and are less likely to raise their needed level of capital. Interestingly, the presence of more historical accounting information and independent assurance on financial statements attenuates investors’ negative response to the optimistic tone of FLDs. Finally, I examine post-ECF capital market outcomes and find that firms disclosing more FLDs continue to raise capital subsequent to the initial ECF campaign. Overall, the findings highlight the importance of startups’ prospective disclosures and accounting information in mitigating information asymmetry in the ECF market.

Digital Object Identifier (DOI)

Funding Information

This study was supported by:

1. Von Allmen School of Accountancy during 2018-2022

2. Graduate Student Congress at the University of Kentucky in 2021 and 2022

Available for download on Friday, August 02, 2024