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Reward-Based Crowdfunding. How to Make it Work?

Author

Listed:
  • Daniela Hadacová

    (TECHNICAL UNIVERSITY OF KO_ICE)

  • Lenka Malická

    (TECHNICAL UNIVERSITY OF KO_ICE)

Abstract

The paper aims to identify attributes having a significant impact on the successful financing of crowdfunding campaigns published on the largest crowdfunding platform based on reward models in the Czech Republic. The paper’s motivation arises from the theoretical background of crowdfunding and related empirical research, where crowdfunding based on rewards is analysed. The paper aims to identify the determinants of the success of selected crowdfunding projects using logistic regression analysis. Results of the logit estimation show that the number of fans on the campaign’s Facebook page, the use of video in the campaign and the size of the campaign’s financial goal have a significant impact on the campaign’s success. The last part of the paper also includes the limitations of the performed analysis and suggestions for further analysis of crowdfunding.

Suggested Citation

  • Daniela Hadacová & Lenka Malická, 2022. "Reward-Based Crowdfunding. How to Make it Work?," Theory Methodology Practice (TMP), Faculty of Economics, University of Miskolc, vol. 18(01), pages 45-59.
    • Handle: RePEc:mic:tmpjrn:v:18:y:2022:i:01:p:45-59
    as

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    File URL: http://tmp.gtk.uni-miskolc.hu/volumes/2022/01/TMP_2022_01_4_k.pdf
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    References listed on IDEAS

    as
    1. Di Pietro, Francesca & Butticè, Vincenzo, 2020. "Institutional characteristics and the development of crowdfunding across countries," International Review of Financial Analysis, Elsevier, vol. 71(C).
    2. Zaggl, Michael A. & Block, Joern, 2019. "Do small funding amounts lead to reverse herding? A field experiment in reward-based crowdfunding," Journal of Business Venturing Insights, Elsevier, vol. 12(C).
    3. Thapa, Nischal, 2020. "Being cognizant of the amount of information: Curvilinear relationship between total-information and funding-success of crowdfunding campaigns," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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