Herding behaviour in equity crowdfunding and P2P lending markets: A systematic meta-analysis

Key Points

• Herding behaviour significantly influences investment decisions in equity crowdfunding and P2P lending markets, leading to clustered investments.
• Findings indicate that herding increases the risk of market volatility, affecting both investors and platforms involved in these funding types.
• Systematic meta-analysis captured 30 studies exploring market dynamics and financial psychology across multiple platforms and sectors.
• Understanding herding can help platforms design better strategies, supporting informed decisions and reducing potential market risks.