The Impact of Project and Founder Quality on Crowdfunding Success

Xiaohong Huang, Rezaul Kabir, Ngoc Thuy Nguyen

Research output: Contribution to conferencePaper

Abstract

This study examines how the quality of crowdfunding projects and their founders affect the success of crowdfunding campaigns. Examining hand-collected data of 118 crowdfunding projects, we find that the presence of more quality signals and the provision of additional founder information are associated with a higher probability of success. These findings confirm the role of quality on funding outcomes. By having more project and founder quality indicators, the information asymmetry problem becomes less severe and investors have more trust to invest in a project. Further analyses show that the result holds for equity-based crowdfunding rather than reward-based crowdfunding.
Original languageEnglish
Publication statusPublished - Jun 2019
Event10th INEKA Conference Verona 2019: Knowledge, Business and Innovation, Economies and Sustainability of Future Growth - Università degli Studi di Verona, Verona, Italy
Duration: 11 Jun 201913 Jun 2019
Conference number: 10
https://www.aciek-academy.com/2019-verona-venue/

Conference

Conference10th INEKA Conference Verona 2019
Abbreviated titleINEKA 2019
CountryItaly
CityVerona
Period11/06/1913/06/19
Internet address

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  • Cite this

    Huang, X., Kabir, R., & Nguyen , N. T. (2019). The Impact of Project and Founder Quality on Crowdfunding Success. Paper presented at 10th INEKA Conference Verona 2019, Verona, Italy.