Individual's financial investment decision-making in reward-based crowdfunding: evidence from China. Issue 4 (23rd February 2019)

• Record Type: Journal Article
• Authors: Shahab, Yasir; Ye, Zhiwei; Riaz, Yasir; Ntim, Collins G.
• Is Part Of: Applied economics letters. Volume 26:Issue 4(2019)
• Page Start: 261
• Page End: 266
• Publication Date: 2019-02-23
• Subjects: Crowdfunding -- backers -- financial investment decision -- online feedback -- China; G19 -- L19 -- M13 -- M21; Economics -- Periodicals; Economics, Mathematical -- Periodicals; 330
• DOI: 10.1080/13504851.2018.1464643
• Languages: English
• ISSNs: 1350-4851

Abstract

ABSTRACT: This article 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 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.