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Let others know who your friends are: The effect of collaborator disclosure on crowdfunding performance

Author

Listed:
  • Feng Chen
  • Song Chen
  • Jian Ding
  • Ercheng Shan
  • Pu Zhao

Abstract

Our analysis of 141,848 campaigns on the Kickstarter crowdfunding platform suggests that collaborator disclosure has a substantial positive impact on crowdfunding performance. This finding is consistently supported by a series of robustness tests. Collaborator disclosure alleviates backers' concerns about campaign risk, the competence of the fundraiser, and the fundraiser's lack of experience. Our findings highlight the significance of disclosing information about collaborators in financial markets with high levels of information asymmetry. In addition, our research adds to the existing literature on voluntary information disclosure and its ability to alleviate market frictions.

Suggested Citation

  • Feng Chen & Song Chen & Jian Ding & Ercheng Shan & Pu Zhao, 2024. "Let others know who your friends are: The effect of collaborator disclosure on crowdfunding performance," Accounting and Finance, Accounting and Finance Association of Australia and New Zealand, vol. 64(2), pages 1549-1568, June.
    • Handle: RePEc:bla:acctfi:v:64:y:2024:i:2:p:1549-1568
    DOI: 10.1111/acfi.13190
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    References listed on IDEAS

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