Signalling experience &amp; reciprocity to temper asymmetric information in crowdfunding evidence from 10,000 projects

Davies, William E.; Giovannetti, Emanuele

doi:10.1016/j.techfore.2018.03.011

Cited by 85 publications

(89 citation statements)

References 36 publications

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“…Backers can obtain a reward via their investment. The reward can be a product, artwork, or any other reward they provide, which depends on the size of the investment [13]. There are two mechanisms for reward-based crowdfunding: "all or nothing" or "keep it all."…”

Section: Crowdfunding and Reward-based Crowdfundingmentioning

confidence: 99%

“…What is more, signaling theory [58,59] suggests that the behavior of entrepreneurs is related to the extent to which other parties have access to different information and depends on how they communicate and interpret information [60]. Some studies have proved that successful crowdfunding depends on credible and valuable signals provided by creators [3,13,15,40,61]. For example, higher Facebook "like" count can send a good word-of-mouth signal to backers [29].…”

Section: Information Asymmetry Information Communication and Signalmentioning

confidence: 99%

“…More experienced creators can more easily obtain the backers' trust and are more likely to receive investment [29]. The number of projects backed by the creator represents the signal of reciprocity [13,18]. The funding goal shows the creator's ambition, and duration can present the creator's patience [13].…”

Section: Information Asymmetry Information Communication and Signalmentioning

confidence: 99%

“…The number of projects backed by the creator represents the signal of reciprocity [13,18]. The funding goal shows the creator's ambition, and duration can present the creator's patience [13]. In total, based on signaling theory and information asymmetry, we focus on the perspective of information communication and discuss the influence of information description on crowdfunding success, taking the creators' experience, funding goal, duration, Facebook connections, external websites, number of rewards, start year, start month, country, and category as controls.…”

Section: Information Asymmetry Information Communication and Signalmentioning

confidence: 99%

“…The antecedents of crowdfunding success can mainly be divided into three types. First, the creators-related factors are important influencers for crowdfunding success, including creators' experience and expertise [12][13][14], group size and composition [14][15][16], social capital [13,[17][18][19][20], and human capital [2,21]. Second, the projects' internal characteristics and related outcomes, such as the goal [16,22], duration [16,22,23], category [24][25][26][27], rewards [16,22,23,28], have also been verified as antecedents that may affect the crowdfunding success.…”

Section: Introductionmentioning

confidence: 99%

See 4 more Smart Citations

Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication

Liang¹,

Hu²,

Jiang³

2020

Sustainability

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Crowdfunding has been widely used by small and micro enterprises, which can raise funds through launching a project in crowdfunding platform. It is also beneficial to sustainable financing. What is more, the success of crowdfunding projects facilitates the sustainable development of those growing enterprises. In this study, from the perspective of information communication and based on information asymmetry and signaling theory, we identify three dimensions of information description, including information quantity (word count, picture count and video count), information attitude (as measured by comment), and information quality (readability and update). We empirically examine their direct effects on crowdfunding success and the moderating effect of information attitude using binary logistic regression. Data (N = 7207) is collected from Kickstarter, a popular crowdfunding platform. The results reveal that when considering these three dimensions of information description together, word count is associated with crowdfunding success in an inverted-U shape. Picture count, video count, comment, and update have positive effects on crowdfunding success. In contrast, readability is negatively related to crowdfunding success. In addition, we find that comment negatively moderates the effect of picture count on crowdfunding success. These findings show the significance of information description on crowdfunding success, bringing theoretical and practical insights for project creators.

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Section: Crowdfunding and Reward-based Crowdfundingmentioning

confidence: 99%

Section: Information Asymmetry Information Communication and Signalmentioning

confidence: 99%

Section: Information Asymmetry Information Communication and Signalmentioning

confidence: 99%

Section: Information Asymmetry Information Communication and Signalmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 3 more Smart Citations

Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication

Liang¹,

Hu²,

Jiang³

2020

Sustainability

View full text Add to dashboard Cite

show abstract

Timing co‐creation: A reward‐based crowdfunding perspective

Primanti,

Japutra,

van Doorn

et al. 2023

J of Consumer Behaviour

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Reward‐based crowdfunding provides a rich arena for co‐creation, where different types of dialogues between backers and project initiators aid crowdfunding performance. Nevertheless, research on how backers' co‐creation, in the form of comments, influences crowdfunding performance is still scarce. Based on signaling theory, this research investigates the impact of backers' specific co‐creation comments (we coded comments for co‐ideation, co‐evaluation, and co‐design) on crowdfunding performance. The present study also examines whether the timing of posting co‐creation comments influences associated performance benefits. We used a panel dataset of 446 reward‐based crowdfunding projects with 7254 observation days. The results show that backers' co‐ideation and co‐evaluation activity leads to a higher funding amount. Furthermore, the impact of co‐ideation is higher for comments made early in the project's lifecycle, while the effect of co‐design is wholly contingent on the time of commenting, with early co‐design comments contributing negatively to crowdfunding performance.

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The Contribution of Crowdfunding Regulation to Cultural Entrepreneurship in a Supportive Ecosystem

Lazzaro

Noonan

2021

Cultural Initiatives for Sustainable Development

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Signalling experience & reciprocity to temper asymmetric information in crowdfunding evidence from 10,000 projects

Cited by 85 publications

References 36 publications

Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication

Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication

Timing co‐creation: A reward‐based crowdfunding perspective

The Contribution of Crowdfunding Regulation to Cultural Entrepreneurship in a Supportive Ecosystem

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