{"title":"Determinants of reward crowdfunding success: Evidence from Covid-19 pandemic","authors":"Zeinab Elrashidy , Roszaini Haniffa , Mohamed Sherif , Sarra Baroudi","doi":"10.1016/j.technovation.2024.102985","DOIUrl":null,"url":null,"abstract":"<div><p>This study examines the impact of quality signals as proxied by third party recognition, videos, photos, GIFs, online presence, and general disclosure; and signals of trust proxied by risk disclosure, location of fundraisers, team effort and recent funding success on reward crowdfunding success. In addition, the analysis investigates and provides new evidence on the moderating effects of the Covid-19 pandemic on the relationship between the two types of signaling and funding success. Using data from of 21,270 campaigns posted on Kickstarter over the period July 2019 to July 2020, logistic regression models indicate a statistically significant relationship between quality/trust signals and campaigns’ funding success. Interestingly, we find that using diverse multimedia content, providing extensive information disclosure, involving a team of creators and having a track record of previous successful funding are significant determinants of reward crowdfunding success. On the contrary, the use of photos and disclosure of online presence have significant adverse effect on the likelihood of funding success. The findings also suggest that the external shock of Covid-19 pandemic only has significant interactive effects on the reward crowdfunding success for two signaling proxies, viz. Extent of risk information disclosure and external URL presence. Our findings are robust to the Difference-in-Differences model check and a range of other robustness tests.</p></div>","PeriodicalId":49444,"journal":{"name":"Technovation","volume":null,"pages":null},"PeriodicalIF":11.1000,"publicationDate":"2024-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S016649722400035X/pdfft?md5=a0bfd028d4c02a895e8f6075774454de&pid=1-s2.0-S016649722400035X-main.pdf","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Technovation","FirstCategoryId":"91","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S016649722400035X","RegionNum":1,"RegionCategory":"管理学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q1","JCRName":"ENGINEERING, INDUSTRIAL","Score":null,"Total":0}
引用次数: 0
Abstract
This study examines the impact of quality signals as proxied by third party recognition, videos, photos, GIFs, online presence, and general disclosure; and signals of trust proxied by risk disclosure, location of fundraisers, team effort and recent funding success on reward crowdfunding success. In addition, the analysis investigates and provides new evidence on the moderating effects of the Covid-19 pandemic on the relationship between the two types of signaling and funding success. Using data from of 21,270 campaigns posted on Kickstarter over the period July 2019 to July 2020, logistic regression models indicate a statistically significant relationship between quality/trust signals and campaigns’ funding success. Interestingly, we find that using diverse multimedia content, providing extensive information disclosure, involving a team of creators and having a track record of previous successful funding are significant determinants of reward crowdfunding success. On the contrary, the use of photos and disclosure of online presence have significant adverse effect on the likelihood of funding success. The findings also suggest that the external shock of Covid-19 pandemic only has significant interactive effects on the reward crowdfunding success for two signaling proxies, viz. Extent of risk information disclosure and external URL presence. Our findings are robust to the Difference-in-Differences model check and a range of other robustness tests.
期刊介绍:
The interdisciplinary journal Technovation covers various aspects of technological innovation, exploring processes, products, and social impacts. It examines innovation in both process and product realms, including social innovations like regulatory frameworks and non-economic benefits. Topics range from emerging trends and capital for development to managing technology-intensive ventures and innovation in organizations of different sizes. It also discusses organizational structures, investment strategies for science and technology enterprises, and the roles of technological innovators. Additionally, it addresses technology transfer between developing countries and innovation across enterprise, political, and economic systems.