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Religious and social narratives and crowdfunding success

Author

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  • Rama, Ali
  • Jiang, Chunxia
  • Johan, Sofia
  • Liu, Hong
  • Mai, Yong

Abstract

In this study, we explore how the religiosity and social orientation affects crowdfunding success through the lens of the moral foundation theory. Using a sample of 17,000 crowdfunding campaigns from 91 countries hosted on the LaunchGood platform over the period 2013–2020, we find that narratives expressing religious identity and social orientation increase individual contribution, attract more crowdfunders, and increase the probability of achieving fundraising goals. We also find that this positive effect is conditional to societal cultural characteristics – stronger in individualistic, masculine, long-term oriented, and indulgent societies, but weaker in high power-distance and uncertainty avoiding societies. Our findings provide new evidence for the importance of religiosity in influencing crowdfunding behavior.

Suggested Citation

  • Rama, Ali & Jiang, Chunxia & Johan, Sofia & Liu, Hong & Mai, Yong, 2022. "Religious and social narratives and crowdfunding success," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:intfin:v:80:y:2022:i:c:s1042443122000774
    DOI: 10.1016/j.intfin.2022.101595
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    More about this item

    Keywords

    Crowdfunding; Religiosity; Linguistic narrative; Moral foundation;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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