Individual’s financial investment decision-making in reward-based crowdfunding: evidence from China
Individual’s financial investment decision-making in reward-based crowdfunding: evidence from China
This paper extends the work of Cecere et al. (Appl. Econ., 49(57): 5802-5813, 2017) and explores the antecedents of backers’ decision to invest in projects from eight categories on a reward-based crowdfunding platform in China. We extract data from 2011 to 2016 from the pioneer Chinese reward-based crowdfunding site “Demohour”. Our empirical investigation using Ordinary Least Squares (OLS) reveals that feedback score, social capital (followers on Weibo, project sharing on social media) and project quality (number of updates) are key motivating factors in investment decision and subsequently, project success or failure. Robustness tests also confirm the findings.
Crowdfunding, backers, financial investment decision, online feedback, China
1-7
Shahab, Yasir
b47bf26f-bd24-48c8-beaf-5c6849bf10c2
Ye, Zhiwei
e8e56013-efea-4de3-90fd-e003ecb358f5
Riaz, Yasir
7e2e5545-45f3-4793-acca-2da290d66377
Ntim, Collins
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Shahab, Yasir
b47bf26f-bd24-48c8-beaf-5c6849bf10c2
Ye, Zhiwei
e8e56013-efea-4de3-90fd-e003ecb358f5
Riaz, Yasir
7e2e5545-45f3-4793-acca-2da290d66377
Ntim, Collins
1f344edc-8005-4e96-8972-d56c4dade46b
Shahab, Yasir, Ye, Zhiwei, Riaz, Yasir and Ntim, Collins
(2018)
Individual’s financial investment decision-making in reward-based crowdfunding: evidence from China.
Applied Economics Letters, 26 (4), .
(doi:10.1080/13504851.2018.1464643).
Abstract
This paper extends the work of Cecere et al. (Appl. Econ., 49(57): 5802-5813, 2017) and explores the antecedents of backers’ decision to invest in projects from eight categories on a reward-based crowdfunding platform in China. We extract data from 2011 to 2016 from the pioneer Chinese reward-based crowdfunding site “Demohour”. Our empirical investigation using Ordinary Least Squares (OLS) reveals that feedback score, social capital (followers on Weibo, project sharing on social media) and project quality (number of updates) are key motivating factors in investment decision and subsequently, project success or failure. Robustness tests also confirm the findings.
Text
AEL Shahab Main Manuscript with authors details (02-04-18)
- Accepted Manuscript
More information
Accepted/In Press date: 3 April 2018
e-pub ahead of print date: 13 April 2018
Keywords:
Crowdfunding, backers, financial investment decision, online feedback, China
Identifiers
Local EPrints ID: 419651
URI: http://eprints.soton.ac.uk/id/eprint/419651
ISSN: 1350-4851
PURE UUID: 1443f3b1-232f-4d80-bc3f-cbbaf172e6ba
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Date deposited: 18 Apr 2018 16:32
Last modified: 16 Mar 2024 06:27
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Author:
Yasir Shahab
Author:
Zhiwei Ye
Author:
Yasir Riaz
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