Journal of Economic, Finance Research and Review (JEFRR) · Research article · Open access
A Signal–Trust–Intention Framework for Retail Investor Behavior in Malaysia’s Equity Crowdfunding Market
Loo Sung King, Shishi Kumar Piaralal, Nur Amalina Zulkefli, Siti Mazlita Yamaludin, Santhi Raghavan
18 May 2026 · Vol. 2, Issue 5, pp. 278-285
DOI: 10.65150/EP-jefrr/V2E5/2026-02
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What is this article about?
Equity crowdfunding (ECF) has emerged as a key fintech mechanism for entrepreneurial financing, yet increasing institutional strengthening has not consistently translated into sustained retail investor participation. This study develops a conceptual Signal–Trust–Intention framework to explain this inconsistency through the Participation Paradox, defined as the breakdown between institutional credibility and behavioral investment conversion.
Article at a glance
- Published
- 18 May 2026
- Volume / issue / pages
- Vol. 2, Issue 5, pp. 278-285
- ISSN
- 3051-3650 (online) · 3051-3642 (print)
- Licence
- CC BY 4.0 — free to read and reuse with attribution
- Peer review
- Double-blind, at least two independent reviewers
- Publisher
- EP Journals Group
Abstract
Equity crowdfunding (ECF) has emerged as a key fintech mechanism for entrepreneurial financing, yet increasing institutional strengthening has not consistently translated into sustained retail investor participation. This study develops a conceptual Signal–Trust–Intention framework to explain this inconsistency through the Participation Paradox, defined as the breakdown between institutional credibility and behavioral investment conversion. Integrating Signaling Theory, Trust Theory, and the Elaboration Likelihood Model, the framework explains how perceived platform quality, regulatory compliance visibility, and disclosure informativeness jointly shape retail investor trust, which subsequently influences investment intention under the moderating role of financial literacy. The study advances a behavioral transmission perspective in which institutional signals are not directly converted into action but are cognitively processed and filtered through trust formation and investor capability. By situating the analysis within a regulated equity crowdfunding environment, the framework highlights the limitations of institutional signals in generating behavioral uptake when cognitive processing and interpretive capacity vary across investors. The study contributes to fintech investment literature by offering an integrated explanation of investor behavior under uncertainty and proposing a structured agenda for future empirical validation.
Keywords: Equity crowdfunding, Participation Paradox, Signaling Theory, Trust, Financial Literacy, Investment Intention
Cite this article
Loo Sung King, Shishi Kumar Piaralal, Nur Amalina Zulkefli, Siti Mazlita Yamaludin, & Santhi Raghavan (2026). A Signal–Trust–Intention Framework for Retail Investor Behavior in Malaysia’s Equity Crowdfunding Market. Journal of Economic, Finance Research and Review, 2(5), 278-285. https://doi.org/10.65150/EP-jefrr/V2E5/2026-02
@article{Loo2026,
title = {A Signal–Trust–Intention Framework for Retail Investor Behavior in Malaysia’s Equity Crowdfunding Market},
author = {Loo Sung King and Shishi Kumar Piaralal and Nur Amalina Zulkefli and Siti Mazlita Yamaludin and Santhi Raghavan},
journal = {Journal of Economic, Finance Research and Review},
year = {2026},
volume = {2},
number = {5},
pages = {278-285},
doi = {10.65150/EP-jefrr/V2E5/2026-02},
url = {https://doi.org/10.65150/EP-jefrr/V2E5/2026-02}
}Questions about this article
Who wrote this article?
Loo Sung King, Shishi Kumar Piaralal, Nur Amalina Zulkefli, Siti Mazlita Yamaludin, Santhi Raghavan.
Where and when was it published?
In Journal of Economic, Finance Research and Review, Volume 2, Issue 5, pages 278-285, published by EP Journals Group on 18 May 2026.
Is this article free to read?
Yes. It is open access under a Creative Commons Attribution 4.0 (CC BY 4.0) licence, so anyone can read, share and reuse it with attribution.
What is the DOI of this article?
10.65150/EP-jefrr/V2E5/2026-02 (https://doi.org/10.65150/EP-jefrr/V2E5/2026-02).
How do I cite this article?
APA: Loo Sung King, Shishi Kumar Piaralal, Nur Amalina Zulkefli, Siti Mazlita Yamaludin, & Santhi Raghavan (2026). A Signal–Trust–Intention Framework for Retail Investor Behavior in Malaysia’s Equity Crowdfunding Market. Journal of Economic, Finance Research and Review, 2(5), 278-285. https://doi.org/10.65150/EP-jefrr/V2E5/2026-02
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