Sofia Johan

Sofia Johan
Florida Atlantic University | FAU · Department of Finance

Professor

About

209
Publications
30,195
Reads
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2,960
Citations
Introduction
Empirical research on alternative finance and alternative investments

Publications

Publications (209)
Article
In this study, we explore how the religiosity and social orientation affects crowdfunding success through the lens of the moral foundation theory. Using a sample of 17,000 crowdfunding campaigns from 91 countries hosted on the LaunchGood platform over the period 2013-2020, we find that narratives expressing religious identity and social orientation...
Article
Full-text available
Using PitchBook’s private equity (PE) database of 4548 PE funds from 42 countries for the 2000 to 2012 period, we find that higher reporting frequency is associated with lower information asymmetry in performance reports from general partners (GPs) to limited partners. We also find that endowments are systematically associated with less reported un...
Preprint
Full-text available
We propose three governance mechanisms pertinent to securities-based crowdfunding and campaign success through mitigating pronounced information asymmetries and agency problems. First, unlike IPOs for which the effect of Delaware incorporation has declined or disappeared over time, we propose Delaware incorporation matters a great deal for success...
Article
Full-text available
Equity Crowdfunding Online Portals offer access to investors, resources and fundraising support to numerous equity crowdfunding projects from different industry sectors. In this context, we study investors’ preferences of equity crowdfunding projects in different industries. We present novel empirical evidence revealing differences in startup chara...
Preprint
Full-text available
The literature considers firms seeking finance through an initial public offering (IPO) as entrepreneurial. But are they? We hypothesize that firms in the latter stage of industry life-cycle, or late bloomer firms as less innovative, proactive, and risk-taking, signal entrepreneurial orientation with competitively aggressive M&A strategies. They st...
Article
Full-text available
Professor Wright's body of research on Venture Capital (VC) has advanced the field and has facilitated recent research on new sources of financing for start-ups such as crowdfunding and blockchain. In this article, inspired by Professor Wright's pursuit in encouraging new directions in research, we first demonstrate, with an illustrative study on V...
Poster
Full-text available
Scope of the Conference: We are delighted to invite you to the 2nd Annual Boca Corporate Finance and Governance Conference, which will be Hybrid, both held in Florida Atlantic University in Boca Raton, Florida, and Virtually during 11th–12th December 2021. We invite the submission of original papers on all aspects of corporate finance and corporate...
Article
Numerous collapses and corporate scandals of large corporations have underscored the impact of corporate conduct on capital markets and society as a whole. These failures have highlighted the need for regulators to rethink regulatory frameworks and enforcement, and for corporations to rework their organizational structures and focus on business eth...
Article
This paper investigates three areas of corporate finance, and the role of alternative finance in contributing to our understanding of these areas. First, we look at disclosure, information asymmetry, and adverse selection, and how different alternative finance solutions are used to mitigate these issues. Second, we examine moral hazard and risk tak...
Article
This paper studies the impact of qualitative business information on mitigating information asymmetry between equity crowdfunding entrepreneurs and investors. Qualitative business information covers the entrepreneurs' introduction on business model, competitive strategy, product market, drivers and barriers for product/service adoption and business...
Article
Publicly funded business advisory services face pressure to demonstrate value‐added effects among their assisted firms. Our research aims to measure the effectiveness of a business advisory programme developed in a developed country and applied in an emerging economy with a male‐dominated labour market. We also seek to determine the effects of incr...
Article
What signals quality for digital startups seeking access to external finance? Analyzing a unique dataset from India, we investigate the impact of traditional quality signals (e.g., the founders’ years of experience, prior industry experience); networking signals (e.g., degrees from elite educational institutes, the breadth of an entrepreneurial tea...
Preprint
Full-text available
We examine the intersection between financial inclusion, financial literacy, and financial technology. Using worldwide data, we find a significant positive relation between the World Bank's "Findex" measures and various measures of financial literacy, as well as Google Trends. We show that e-commerce legislation around the world significantly posit...
Article
We conjecture that adoption of agricultural biotech innovation imposes relationship-specific investments that exacerbate hold-up costs between biotech producers and farmers. Moreover, the increasing presence of biotech reduces biodiversity, which is a significant negative externality on food production across farms. As such, increasing biotech has...
Article
Theories on contextual behavior (e.g., social norm, self-identity, and legitimacy theories) suggest that the religiosity of the geographical area in which an organization operates influences its behavior. Using a sample of 91,020 VC investments in the U.S., we study whether religiosity influences VC investment decisions. Based on prior literature t...
Chapter
Full-text available
Article
Crowdfunding platform due diligence comprises background checks, site visits, credit checks, cross-checks, account monitoring, and third party proof on funding projects. We evaluate the factors associated with platforms’ compliance expenses, and their due diligence application. We find that due diligence is related to legislation requirement, platf...
Article
Full-text available
The discussion on 'The comparative institutional analysis of energy transitions' gives us a state-of-the-art overview of the main theoretical and conceptual developments within the field of political economy. It invites us to broaden our knowledge on the changing realities of different geographical regions in energy transition. In this discussion f...
Article
Full-text available
Distributed ledger technology, also known as the blockchain, is gaining traction globally. Blockchain offers a secure validation mechanism and decentralized mass collaboration. Cryptocurrencies make use of this technology as a new asset class for investors worldwide. Cryptocurrencies are being used by companies to raise capital via initial coin off...
Article
This study examines the causal relationships between inequality, poverty and entrepreneurship. We hypothesize that income inequality influences entrepreneurial activity, and entrepreneurial activity alleviates absolute poverty. Findings from longitudinal analyses of a dataset from all 50 US states over an 18-year period provide robust support for t...
Article
Distinguishing between switches, pre-authorized contributions, systematic withdrawal plans, reinvestments, and distributions, we find that different types of fund flow exhibit distinct characteristics to retail fund flow with respect to fund fees and past performance. We argue that the positive correlation between retail fund inflow and switch-out...
Article
Based on mergers and acquisitions (M&As) from over 45 countries from 2003 to 2014, we show that the presence of end‐of‐day (EOD) target price manipulation prior to M&As increases the probability of an M&A deal withdrawal, and decreases the premium paid. More detailed exchange trading rules that govern manipulation across countries and over time low...
Article
We review statistical methods used to estimate the impact of crowding out of private venture capital (VC) by government VC. We review three types of failures that have plagued the VC literature and resulted in policy implications that are precisely the opposite of what the data actually indicate. The first failure involves the mistaken use of measu...
Article
Full-text available
We develop new theory pertaining to institutional determinants of renewable-energy usage across countries and over time. Building on key strands of the comparative capitalisms literature, we introduce new hypotheses relating to the 2009 Directive from the European Union(EU) on energy generation, as well as the impact of labour market regimes, natio...
Article
Crowdlending has emerged in recent years as an innovative way to finance new ventures and small companies. However, digitalized funding is a new technology itself; therefore, it is prone to mispricing and inefficiencies. We investigate whether peer-to-peer crowdlending to businesses provides investors with returns consistent with the level of risk...
Article
While it is not clear from Christensen, Hail, and Leuz (2016), the market abuse rules they examine are the same as in Cumming, Johan, and Li (2011), with a difference in focus on the date: Christensen et al. (2016) pick the date the regulations were signed into law, while Cumming et al. (2011) pick date the date the regulations were implemented wit...
Article
Research in the area of public policy towards entrepreneurial finance has traditionally been focused on financing gaps, and whether or not government programmes successfully address or mitigate those financing gaps. More recently, a growing literature has identified externalities across different forms of entrepreneurial finance. These externalitie...
Article
We present and analyze a novel set of enforcement data from the European Securities Market Authority during the period following the European Union’s harmonized rule setting on securities market abuse. The data show significant differences in the intensity of enforcement across Europe. The empirical tests are highly consistent with the view that th...
Article
Full-text available
This paper presents the first evidence of the influence of geographic distance among retail, accredited, and overseas investors and venture location in an equity crowdfunding context. By analyzing investment decisions, we show that geographic distance is negatively correlated with investment probability for all home country investors. Our compariso...
Book
Firms generally begin as privately owned entities. When they grow large enough, the decision to go public and its consequences are among the most crucial times in a firm’s life cycle. The first time a firm is a reporting issuer gives rise to tremendous responsibilities about disclosing public information and accountability to a wide array of retail...
Presentation
Full-text available
This paper presents the first evidence of the influence of geographic distance among retail, accredited, and overseas investors and venture location in an equity crowdfunding context. By analyzing investment decisions, we show that geographic distance is negatively correlated with investment probability for all home country investors. Our compariso...
Article
This paper analyzes hedge fund performance, risk, and fund flows before and after the implementation of the Dodd–Frank Act. The data indicates that, relative to non-US hedge funds, US hedge funds that are regulated under Dodd–Frank have lower fund alphas in the post-Dodd–Frank implementation period, both statistically and economically significant,...
Article
Research summary This article provides a review of the entrepreneurial finance literature in the surprisingly not very well integrated entrepreneurship and finance journals. Entrepreneurial finance encompasses venture capital, private equity, private debt, trade credit, IPOs, angel finance, and crowdfunding, among other forms of finance. We analyze...
Article
This paper reviews recent literature on financial market institutions, governance, agency costs, and misconduct, and summarizes papers in this special issue. The papers contribute to the misconduct and governance literature in relation to the role of auditors, boards of directors, CEOs, ownership, and financial market regulation. We show Google Sch...
Article
Using a comprehensive sample of cross-country mergers and acquisitions for the period 2000 to 2014 we examine the effect of common auditors on the efficiency of cross-country M&A transactions. We predict that the use of common auditors reduces uncertainty, resulting in higher M&A efficiency. We find that this common-auditor effect results in a posi...
Article
This paper utilizes a natural experiment – the establishment of the Shenzhen Small and Medium Enterprises Board (SME Board) – as an exogenous shock of liquidity provision to venture capital (VC) investment in China. The establishing of the SME Board has enabled the disentangling of the supply side from the demand side of entrepreneurial financing....
Article
The aim of the paper is to study the value created by foreign shareholders in Indonesia finance company industry over the period 2001-2015. We analysed the value creation of related and unrelated foreign shareholders by comparing the key financial performance. We analysed 7 micro key financial ratios (profitability, efficiency, growth, firm size, l...
Article
This paper presents evidence about the shortfall of venture capital in Canada relative to comparable regions in the United States, despite massive government spending on governmental venture capital programs in Canada. The Government of Canada committed $500 million towards venture capital in 2013 through the Venture Capital Action Plan. The Govern...
Article
This paper examines the impact of analyst coverage on the financial reporting quality of firms as reflected by modified audit opinions (MAOs). Using a sample of Chinese listed firms between 2003 and 2009, we find that analyst coverage, which serves as an external governance mechanism, helps to enhance the financial reporting quality of Chinese list...
Article
We analyze the influence of political connections on firms' access to capital and the ensuing effect on the cost of raising capital. Using a dataset of 413 IPOs from 2009 to 2012, we exploit a research setting where government is still highly involved with the process. We find that firms rely on political connections to reduce IPO rejection risk as...
Article
Using deal level data from 2733 private equity (PE) deals from 35 emerging markets, we find that PE fund managers have a higher probability of successful exits in countries with better business and legal environments. We also find that they are able to mitigate the potential costs associated with inefficient and corrupt business environments to inc...
Article
We empirically compare the contributions of venture capital (VC) and private equity backed firms, including those backed by government subsidized innovation investment funds (IIFs), in the Australian economy by analyzing employment, R&D, patents, time to IPO, and market capitalization from market inception to August 2012. Overall, the data highligh...
Article
This paper presents the first evidence of the influence of geographic distance among retail, accredited, and overseas investors and venture location in an equity crowdfunding context. By analyzing investment decisions, we show that geographic distance is negatively correlated with investment probability for all investor types. Our comparison of hom...
Article
The aim of this paper is to study the financial performance between pre and post acquisition of Indonesia finance company industry over the period of 2002-2011. The acquisition can be categorized into 3 categories based on the acquirer. The acquirer can be categorized into banking related acquirer, automotive related acquirer, and unrelated or inde...
Article
Delaware hedge funds exhibit significant differences in contractual structure in terms of higher management and incentive fees. Delaware funds are more likely to use high watermark provisions and less likely to invest their personal capital. Both the redemption notice periods and lock up periods are significantly longer for Delaware hedge funds. Wh...
Article
Governments worldwide spend trillions of dollars on business support programs. This article examines the implications to investors of phasing out one of these subsidy programs. Our setting takes advantage of a unique quasi-natural experiment, where tax subsidies for Canadian Labour-Sponsored Venture Capital Corporations (LSVCCs) were phased out in...
Research
Full-text available
Governments worldwide spend trillions of dollars on business support programs. This article examines the implications to investors of phasing out one of these subsidy programs. Our setting takes advantage of a unique quasi-natural experiment, where tax subsidies for Canadian Labour-Sponsored Venture Capital Corporations (LSVCCs) were phased out in...
Article
Full-text available
Frequent and open interaction between venture capitalists (VCs) and entrepreneurs is necessary for venture capital investments to occur. Increasingly, these investments are made across jurisdictions. The vast majority of these cross-border investments are carried out in a syndicate of two or more VCs, indicating the effects of intra-industry networ...