How do the network structures of lead investors affect the following of distant strangers? Evidence from Chinese equity crowdfunding

Abstract

By employing an integrated network perspective, this article aims to explain how the network structures of lead investors impact the following of distant strangers in the context of equity crowdfunding (ECF). We conduct an empirical analysis of our thesis based on a Chinese ECF platform. The findings show that the lead investors occupying less central positions in an entire network attract more distant strangers and that the density of ego networks not only has a U‐shaped relationship with the following of distant strangers but also positively moderates the relationship between centrality and the following of distant strangers.