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Implicit Personality and Big Five Traits in Equity Crowdfunding

Author

Listed:
  • Neuhaus, Julia
  • Isaak, Andrew Jay
  • Bostandzic, Denefa

Abstract

Implicit personality representations play a crucial role in shaping how investors perceive entrepreneurs and subsequently invest in their projects. We investigate the relationship between perceived Big Five personality signals and funding success utilizing a sample of 709 US-based equity crowdfunding campaigns. We find that higher conscientiousness, lower neuroticism, extraversion, and openness serve as funding success signals, significantly affecting both the funding level and number of investors attracted. This study extends the literature on the relationship between perceived personality signals and entrepreneurial finance by demonstrating the context-dependence of personality signals. The results fuel arguments that equity crowdfunding gears towards classical venture financing and is less comparable to reward-based crowdfunding.

Suggested Citation

  • Neuhaus, Julia & Isaak, Andrew Jay & Bostandzic, Denefa, 2021. "Implicit Personality and Big Five Traits in Equity Crowdfunding," EconStor Conference Papers 338891, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esconf:338891
    Note: Shared first authorship with Julia Neuhaus
    as

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    References listed on IDEAS

    as
    1. Ciavarella, Mark A. & Buchholtz, Ann K. & Riordan, Christine M. & Gatewood, Robert D. & Stokes, Garnett S., 2004. "The Big Five and venture survival: Is there a linkage?," Journal of Business Venturing, Elsevier, vol. 19(4), pages 465-483, July.
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    4. Thies, Ferdinand & Wessel, Michael & Rudolph, Jan & Benlian, Alexander, 2016. "Personality Matters: How Signaling Personality Traits Can Influence the Adoption and Diffusion of Crowdfunding Campaigns," Publications of Darmstadt Technical University, Institute for Business Studies (BWL) 79991, Darmstadt Technical University, Department of Business Administration, Economics and Law, Institute for Business Studies (BWL).
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    Keywords

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    JEL classification:

    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software

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