The dynamics of investor sentiment impacts in equity crowdfunding: unveiling the when

Thang Nguyen*, Jiaqi Guo, Daniel Dao, Thanh Nguyen, Bao To

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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Abstract

Expanding upon the known impact of investor sentiment on crowdfunding contributions, we delve deeper to pinpoint specific conditions under which sentiment influences investor choices. Grounded in psychological theory, we assert that sentiment's influence thrives at the peak of investor attention, primarily on a campaign's first day and among projects with greater uncertainty. Our empirical study, based on 447 campaigns with 17,244 daily observations from the United Kingdom's Crowdcube platform, substantiates our claim. Our research enhances the comprehension of equity crowdfunding investors and provides practical insights for its proponents.
Original languageEnglish
Pages (from-to)423-442
Number of pages20
JournalBritish Journal of Management
Volume36
Issue number1
Early online date16 Jul 2024
DOIs
Publication statusE-pub ahead of print - 16 Jul 2024

Funding

This research is partly funded by the University of Economics Ho Chi Minh City (UEH) under the grant number. Grant Number: 2024-01-09-2048.

Keywords

  • crowdfunding
  • investor sentiment
  • crowd source platforms

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