Signaling to the Crowd: Private Quality Information and Rewards-Based Crowdfunding

Chakraborty, Soudipta; Swinney, Robert

doi:10.2139/ssrn.2885457

Cited by 33 publications

(9 citation statements)

References 29 publications

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“…Miglo and Miglo (2019) consider the choice between reward-based crowdfunding and equity-based crowdfunding and find that high-quality firms prefer reward-based crowdfunding and use it as a signal of quality. Chakraborty and Swinney (2019) consider a crowdfunding model where product quality is known to the entrepreneur but not to some contributors. They find that a larger campaign target can be used by high-quality firms as a signalling device.…”

Section: Literature Reviewmentioning

confidence: 99%

Crowdfunding in a Competitive Environment

Miglo

2020

JRFM

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Crowdfunding has mostly been used to finance very unique projects. Recently, however, companies have begun using it to finance more traditional products where they compete against other sellers of similar products. Major crowdfunding platforms, Kickstarter and Indiegogo, as well as Amazon have launched several projects consistent with this trend. This paper offers a model where two competing firms can use crowdfunding prior to direct sales. The model provides several implications that have not yet been tested e.g., (1) Firms can use crowdfunding strategically to signal a high level of demand for their products; (2) (Reward-based) crowdfunding is procyclical; (3) A higher platform fee may lead to higher firm profits in equilibrium; (4) Competition increases the chances of using crowdfunding compared to the monopoly case; (5) A non-monotonic relationship exists between the risk of crowdfunding campaign failure and firm profit.

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Section: Literature Reviewmentioning

confidence: 99%

Crowdfunding in a Competitive Environment

Miglo

2020

JRFM

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“…Tras encontrar algún tipo de financiamiento sea interno o externo, el nuevo negocio deberá empezar a producir o desarrollar un servicio bajo su propia cuenta o bajo la tercerización de esta función; para más tarde tratar de venderlo directamente, o bajo un intermediario. Este método tradicional es caro y sobre todo riesgoso, dadas las fuertes suposiciones que se deben realizar sobre la real demanda del producto (Chakraborty & Swinney, 2016), así como la sanidad general de sus flujos de efectivo para poder cubrir la deuda u obligaciones de inversionistas.…”

Section: Revisión De Literaturaunclassified

“…El estudio propuesto, se centra específicamente en el modelo basado en recompensa, el cual funciona como la promesa de venta (preventa) de un producto o servicio (Chakraborty & Swinney, 2016); el cual, el emprendedor desea producir, en caso de que el financiamiento 'objetivo' para poner en marcha dicho negocio, se cumpliese (Agrawal et al, 2013).…”

Section: Figura 1 Modelo General De Crowdfundingunclassified

Untitled

2020

retos

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“…Crowdfunding is clearly relevant to operations, especially the questions of how to convert ideas into products, how to make and fulfil promises to the backers, how backers can assess product and process quality, how backers and platforms can screen-out fraud, and how entrepreneurs can signal quality (e.g., Chakraborty and Swinney 2016 papers in OM have studied questions related to the design of campaign rewards, their dynamic management, and the information discovery (e.g., Alaei et al 2016). Crowdfunding is also relevant for new productdevelopment research, because entrepreneurs use backers' feedback to improve product design.…”

Section: Start-ups Entrepreneurship and Financingmentioning

confidence: 99%

Introduction to the Special Issue on Research at the Interface of Finance, Operations, and Risk Management (iFORM): Recent Contributions and Future Directions

Babich

Kouvelis

2018

M&SOM

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Abstract. Interface of finance, operations, and risk management (iFORM) is a relatively new research area dealing with timely, complex, and boundary-spanning issues in a variety of settings from start-ups to global enterprises. iFORM research addresses ways to better integrate physical, financial, and informational flows by combining the operational choices of the firm with its financial decisions, and merging information flows between the firm and its customers and suppliers with informational flows between the firm and its investors. We report on the main research themes of the recent iFORM research, based on, and going beyond, papers that appeared in the Manufacturing and Service Operations Management iFORM special issue. We highlight the main emerging contributions in the area. Among the most frequently addressed issues in current research include the following: supply chain finance, such as trade credit and buyer-intermediated finance and their effects on supply chain performance; agency problems, such as risk shifting and managerial short-termism and their influence on operational decisions; contracting between the firm and its investors and how it alters contracting with supply chain partners; and supply risk management in the form of dealing with commodity price fluctuations and supplier performance issues. We suggest four promising directions of future iFORM research: supply chain finance, integrated risk management, start-up and entrepreneurial financing, and asset pricing with supply chains.

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Signaling to the Crowd: Private Quality Information and Rewards-Based Crowdfunding

Cited by 33 publications

References 29 publications

Crowdfunding in a Competitive Environment

Crowdfunding in a Competitive Environment

Untitled

Introduction to the Special Issue on Research at the Interface of Finance, Operations, and Risk Management (iFORM): Recent Contributions and Future Directions

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