Provide a Debt Financing Model for Financial Institutions and Banks Based on Crowdfunding with a Grounded Theory Approach

Subject Areas : Financial Knowledge of Securities Analysis

ghazal SHAHABI SHOJAEI ¹ (PhD Student, Department of Financial Engineering, Islamic Azad University, UAE)
fereidoon rahnama ² (Prof, Department of Accounting, Islamic Azad University, Science and Research, Tehran, Iran. Corresponding Author)
Shadi Shahverdiani ³ (Assistant Professor, Department of Financial Management, Ghods Branch Azad University, Tehran, Iran)
hashem nikoomaram ⁴ (Prof, Department of Accounting and Finance, University of Science and Research, Tehran, Iran,)

Received: 2021-11-16 Accepted : 2022-05-21 Published : 2022-08-23

Keywords: Debt financing, Crowdfunding, Financial Institutions and Ban, Grounded Theory,

Abstract :

Financial managers of companies often need financing to carry out development projects or their daily turnover finance. In recent years, crowdfunding has become a valuable alternative source of funding for entrepreneurs seeking funding. Therefore, in this study, which has been used qualitatively and with the Grounded Theory, the appropriate model of debt financing of banks through crowdfunding is sought. For this purpose, the opinions of ten experts in this field who were selected using the snowball method were used to identify the factors affecting the debt of financial institutions and banks. After the interviews, the results showed that the banks' debt financing is formed as a result of mass communication (causal conditions), trust building and culture building (intervening conditions) and environmental factors and legalism (ruling bed) which uses e-commerce strategy to secure the debts of banks and credit institutions.

References:

• بیدآباد، بیژن (1393). تامین مالی و جمعی راستین، گزارش بانک ملی ایران: بانک ملی.


• حاجی غلام سریزدی، علی، رجب زاده قطری، علی، مشایخی، علی نقی و حسن زاده، علیرضا(1399). طراحی مدل پویایی شناسی سیستم تامین مالی جمعی در ایران، پژوهش‏های نوین در تصمیم گیری، دوره 5، شماره 2، 49-80.


• زیوری امینه، محمدی خیاره، محسن و مظهری، رضا(1399). مروری نظام مند بر عوامل مؤثر در دسترسی به تأمین مالی فعالیت های کارآفرینی، سیاست نامه علم و فناوری، دوره 10، شماره 3(پیاپی 33)، 55-75.


• محمدی‏اقدم، سعید و کریمی‏ریزی، مجید(1396). طراحی الگوی تامین مالی جمعی مبتنی بر بدهی بانکی در چهارچوب الگوی بانکداری بدون ربا، علمی پژوهشی، جستارهای اقتصادی ایران، س 14، ش 28، صص173-204.


• نکویی، وحید (1399). مدل‏های تامین مالی جمعی شرکت‏ها و کسب‏وکارهای نوپا در اقتصاد ایران، انتشاراتندای کارآفرین، تهران.


• Alexa Böckel, Jacob Hörisch, Isabell Tenner (2021). A systematic literature review of Crowdfunding and sustainability: highlighting what really matters, Management Review Quarterly (2021) 71:433–453 https://doi.org/10.1007/s11301-020-00189-3.


• Allen, S. (2018). Debt financing: pros and cons. In the balance. Retrieved from https://www.thebalance.com/debtfinancing-pros-and-cons-1200981.


• Aziz, S. and Abbas, U. (2019), “Effect of debt financing on firm performance: a study on non-financial sector of Pakistan”, Open Journal of Economics and Commerce, Vol. 2 No. 1, pp. 8-15, available at: https://www.sryahwapublications.com/open-journal-of-economics-and-commerce/pdf/v2-i1/3.pdf.


• Bratton, W. W. (2016). Bond and loan covenants, theory and practice. Capital Markets Law Journal, 11(4), 461-485.


• Chaldeos, A. (2016). The Greek community of Tunis (XVI-XVIII Cent.): aspects of its formation and commercial enterprise. Proceedings Ekklesiastikos Pharos, 2014(1), 57-67.


• Coleman, S., Cotei, C., & Farhat, J. (2016). The debt-equity financing decisions of US startup firms. Journal of Economics and Finance, 40(1), 105-126.


• De Marco, A., & Mangano, G. (2017). Risk factors influencing the debt leverage of project financing initiatives in the energy industry. International Journal of Energy Sector Management, 11(3), 444-462.


• De Mooij, R. A., & Keen, M. (2016). Debt, taxes, and banks. Journal of Money, Credit and Banking, 48(1), 5-33.


• Ding, S., Jia, C., Wu, Z., & Yuan, W. (2016). Limited attention by lenders and small business

 

debt financing: Advertising as attention grabber. International Review of Financial Analysis, 49, 69-82.

• Du, J., Bian, C., & Gan, C. (2017). Bank competition, government intervention and SME debt financing. China Finance Review International, 7(4), 478-492.


• Freedman, David M; Nutting،R. (2015). Equity Crowdfunding for investor. New Jersey: Wiley.


• Karsten Wenzlaff, Wolfgang Gumpelmaier, and Interreg Central Europe CrowdfundPort (2017) “Crowdfunding Training Material for Small and Medium Sized Enterprises,” crowdfundport.eu.


• Ključnikov, A., & Belás, J. (2016). Approaches of Czech entrepreneurs to debt financing and management of credit risk. Equilibrium. Quarterly Journal of Economics and Economic Policy, 11(2), 343-365.


• Kraemer-Eis, H., & Lang, F. (2017). Access to funds: how could CMU support SME financing?. Vierteljahrshefte zur Wirtschaftsforschung, 86(1), 95-110.


• Nazir, A., Azam, M. and Khalid, M.U. (2021), "Debt financing and firm performance: empirical evidence from the Pakistan Stock Exchange", Asian Journal of Accounting Research, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/AJAR-03-2019-0019.


• Omoshagba T.P & Zubairu U. M (2018). A Systematic Review of the Field of Debt Financing, Covenant Journal of Entrepreneurship (CJoE) Vol.2 No .1, June.


• Plummer, L. A., Allison, T. H., & Connelly, B. L. (2016). Better together? Signaling interactions in new venture pursuit of initial external capital. Academy of Management Journal, 59(5), 1585-1604.


• Sileiadou E, Huijben JCCM, Raven RPJM (2016) Three is a crowd? Exploring the potential of Crowdfunding for renewable energy in the Netherlands. J Clean Prod 128:142–155.


• Sluga, G. (2017). “Who Hold the Balance of the World?” Bankers at the Congress of Vienna, and in International History. The American Historical Review, 122(5), 1403-1430.


• Snyder J, Mathers A, Crooks VA (2016) Fund my treatment! A call for ethics-focused social science research into the use of Crowdfunding for medical care. Soc Sci Med 169:27–30.


• Turvey, P. (2017, April 17). A brief history of online debt financing. In Small business.co.uk. Retrieved from http://smallbusiness.co.uk/briefhistory-online-debt-finance-2538280/.

Vismara S (2019) Sustainability in equity Crowdfunding. Technol Forecast Soc 141:98–