Advanced International Journal for Research

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A Widely Indexed Open Access Peer Reviewed Multidisciplinary Bi-monthly Scholarly International Journal

Call for Paper Volume 7, Issue 6 (November-December 2026) Submit your research before last 3 days of December to publish your research paper in the issue of November-December.

Funding Justice: A Conceptual Model of Investor Behaviour in Litigation Crowdfunding

Author(s) Mr. Rojith Prakash C J, Dr. Joobi V P
Country India
Abstract Litigation crowdfunding, a hybrid financing mechanism that sits at the intersection of third-party litigation funding (TPLF) and conventional crowdfunding, has grown into a distinct but under-theorised field of investor behaviour. Unlike commercial entrepreneurial crowdfunding, funders in litigation crowdfunding place capital, whether donative or return-seeking, against an outcome that is adjudicated by a court rather than delivered by a founder, which introduces unique informational, ethical, and legal uncertainties. This conceptual article synthesises the doctrinal, empirical, and behavioural literature on litigation crowdfunding, third-party litigation funding, and crowdfunding investor behaviour at large to build an integrated model of funder decision-making. Drawing on the Theory of Planned Behaviour, Signalling Theory, Justice-Motive and Prosocial Motivation Theory, Social Capital and Herding Theory, and Prospect Theory, the paper conceptualises the funder-litigant-platform relationship as a triadic structure governed by informational asymmetry and trust, and develops eight theoretical propositions linking financial and non-financial motives to funding intention and behaviour. The paper further proposes funding-model type, donation-based versus debt or return-based litigation crowdfunding, as a boundary condition that moderates the strength of these relationships. The resulting conceptual model is positioned for empirical validation within the Indian legal and financial ecosystem, where litigation funding remains judicially tolerated but legislatively unregulated. Implications for platform design, investor protection policy, and future survey-based research are discussed.
Keywords Litigation Crowdfunding. Third-Party Litigation Funding (TPLF). Investor Behaviour. Theory of Planned Behaviour. Signalling Theory
Field Sociology > Administration / Law / Management
Published In Volume 7, Issue 6, November-December 2026
Published On 2026-11-03

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