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Gender stereotypes in equity crowdfunding: the effect of gender bias on the interpretation of quality signals

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  • Simon Kleinert

    (Maastricht University)

  • Kazem Mochkabadi

    (University of Wuppertal)

Abstract

Equity crowdfunding has the potential to democratize entrepreneurial finance and provide female entrepreneurs with new and equal access to early-stage financing. In this paper, we present first empirical evidence on gender stereotypes in the context of technology ventures in equity crowdfunding. Drawing on signaling and gender role congruity theory, we hypothesize that quality signals have different effects depending on whether they are sent by male or female entrepreneurs. Results taken from a sample of 263 equity crowdfunding campaigns run by technology ventures confirm our hypotheses. In line with gender stereotypes, management experience is beneficial for male entrepreneurs but detrimental for female entrepreneurs. Interestingly, media coverage as a third-party signal has the oppositive effect, being more effective for female entrepreneurs.

Suggested Citation

  • Simon Kleinert & Kazem Mochkabadi, 2022. "Gender stereotypes in equity crowdfunding: the effect of gender bias on the interpretation of quality signals," The Journal of Technology Transfer, Springer, vol. 47(6), pages 1640-1661, December.
    • Handle: RePEc:kap:jtecht:v:47:y:2022:i:6:d:10.1007_s10961-021-09892-z
    DOI: 10.1007/s10961-021-09892-z
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    More about this item

    Keywords

    Equity financing; Gender; Signaling theory; Gender role congruity theory; Equity crowdfunding;
    All these keywords.

    JEL classification:

    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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