IDEAS home Printed from https://ideas.repec.org/a/ids/ijesbu/v24y2015i3p322-334.html
   My bibliography  Save this article

How to attract the crowd in crowdfunding?

Author

Listed:
  • Sibin Wu
  • Bin Wang
  • Yuanqing Li

Abstract

We use signalling theory to study a new capital market finance phenomenon: crowdfunding in China. Our finding indicates that signals such as the frequency of announcements and the amount of the highest bid have an impact on the success of crowdfunding projects. Based on a sample of 192 projects collected on a Chinese crowdfunding platform, demohour.com, we find that the amount of the highest bid has a positive effect on completing a successful crowdfunding project. However, for high-tech industry, our results indicate the amount of the highest bid is not as effective as the movie/music industries. We also find the frequency of announcements made by the project founders is a better predictor for funding success in the high-tech industry than in the movie/music industries.

Suggested Citation

  • Sibin Wu & Bin Wang & Yuanqing Li, 2015. "How to attract the crowd in crowdfunding?," International Journal of Entrepreneurship and Small Business, Inderscience Enterprises Ltd, vol. 24(3), pages 322-334.
    • Handle: RePEc:ids:ijesbu:v:24:y:2015:i:3:p:322-334
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=67465
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jörn Block & Lars Hornuf & Alexandra Moritz, 2018. "Which updates during an equity crowdfunding campaign increase crowd participation?," Small Business Economics, Springer, vol. 50(1), pages 3-27, January.
    2. Wesemann, Henrik & Wincent, Joakim, 2021. "A whole new world: Counterintuitive crowdfunding insights for female founders," Journal of Business Venturing Insights, Elsevier, vol. 15(C).
    3. Shneor, Rotem & Zhao, Liang & Fabian Michael Goedecke, Jann, 2023. "On relationship types, their strength, and reward crowdfunding backer behavior," Journal of Business Research, Elsevier, vol. 154(C).
    4. Anna Prisco & Valerio Muto & Ciro Troise & Mario Tani, 2022. "How to Engage the Crowds to Create Value? Evidence from the Pathfinder Arena Case," Sustainability, MDPI, vol. 14(7), pages 1-22, April.
    5. Zhangxi Lin & Andrew B. Whinston & Shaokun Fan, 2015. "Harnessing Internet finance with innovative cyber credit management," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 1(1), pages 1-24, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijesbu:v:24:y:2015:i:3:p:322-334. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=74 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.