International Journal of Performance Measurement







Volume 9, Number 2, December 2019

Detecting the Market Reaction of Start-ups on GISA Equity Crowdfunding in Taiwan by Decision Tree Algorithm

Chun-Yueh Lin*


The equity-crowdfunding platform in Taiwan was created on 2015 that is Go Incubation Board for Startup and Acceleration (GISA) and implementation of the regulations by Taipei Exchange organization. Equity crowdfunding not only reduces trading costs, but also provides a new mechanism for start-ups to establish their reputation toward investors. However, that includes the high risks for fundraisers by equity-crowdfunding. Therefore, this study applies the machine learning technique to evaluate the market reaction for start-ups pre-login GISA in Taiwan equity-crowdfunding platform, which can obtain the rules of market reaction of start-ups firm and forecast the degree of market reaction. Academically, this study develops the decision tree model to detect the market reaction of start-ups before login GISA platform. Practically, the proposed model provides a useful tool for start-ups and entrepreneurs to understand the critical features and if-then rules on evaluating the degree of market reaction more efficiency before login GISA platform.


Keywords: Financial Technology (FinTech), Equity Crowdfunding, Machine Learning, GISA Platform, Decision Tree

JEL Classification: M15, M21

¹ Department of Banking and Finance, Chinese Culture University
*Corresponding Author, E-mail: