IDEAS home Printed from https://ideas.repec.org/a/eee/finlet/v70y2024ics1544612324013746.html
   My bibliography  Save this article

Sustainable crowdfunding and cultural contexts: Evidence from a longitudinal multi-country analysis

Author

Listed:
  • Farè, Luca
  • Meoli, Michele
  • Vismara, Silvio

Abstract

Crowdfunding platforms are increasingly sensitive to sustainable practices. However, the connections between these platforms and sustainability remain under-researched. This study examines how the sustainability orientation of equity crowdfunding platforms influences their performance. Conducting a longitudinal analysis based on 573 platforms in 37 OECD countries over the 2008–2023 period, we document that social-oriented platforms outperform their counterparts. Platforms operating in countries with a more individualist and masculine culture gain less from their social orientation. We contribute to research and inform practitioners by showing that crowdfunding platforms benefit from engaging with sustainability issues and that cultural contexts matter for promoting sustainable crowdfunding.

Suggested Citation

  • Farè, Luca & Meoli, Michele & Vismara, Silvio, 2024. "Sustainable crowdfunding and cultural contexts: Evidence from a longitudinal multi-country analysis," Finance Research Letters, Elsevier, vol. 70(C).
    • Handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013746
    DOI: 10.1016/j.frl.2024.106345
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1544612324013746
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.frl.2024.106345?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Giancarlo Giudici & Massimiliano Guerini & Cristina Rossi-Lamastra, 2018. "Reward-based crowdfunding of entrepreneurial projects: the effect of local altruism and localized social capital on proponents’ success," Small Business Economics, Springer, vol. 50(2), pages 307-324, February.
    2. Francesco Cappa & Michele Pinelli & Riccardo Maiolini & Maria Isabella Leone, 2021. "“Pledge” me your ears! The role of narratives and narrator experience in explaining crowdfunding success," Small Business Economics, Springer, vol. 57(2), pages 953-973, August.
    3. Lars Hornuf & Eliza Stenzhorn & Tim Vintis, 2022. "Are sustainability-oriented investors different? Evidence from equity crowdfunding," The Journal of Technology Transfer, Springer, vol. 47(6), pages 1662-1689, December.
    4. Cumming, Douglas & Meoli, Michele & Rossi, Alice & Vismara, Silvio, 2024. "ESG and crowdfunding platforms," Journal of Business Venturing, Elsevier, vol. 39(1).
    5. Matthew Josefy & Thomas J. Dean & Lumina S. Albert & Markus A. Fitza, 2017. "The Role of Community in Crowdfunding Success: Evidence on Cultural Attributes in Funding Campaigns to “Save the Local Theaterâ€," Entrepreneurship Theory and Practice, , vol. 41(2), pages 161-182, March.
    6. Wong, Jin Boon & Zhang, Qin, 2022. "Stock market reactions to adverse ESG disclosure via media channels," The British Accounting Review, Elsevier, vol. 54(1).
    7. Battaglia, Francesca & Regoli, Andrea & Agnese, Paolo, 2022. "Do local innovation systems promote successful equity crowdfunding campaigns? Evidence from Italy," Finance Research Letters, Elsevier, vol. 48(C).
    8. Paul P. Momtaz, 2024. "Decentralized finance (DeFi) markets for startups: search frictions, intermediation, and the efficiency of the ICO market," Small Business Economics, Springer, vol. 63(4), pages 1415-1447, December.
    9. Messeni Petruzzelli, Antonio & Natalicchio, Angelo & Panniello, Umberto & Roma, Paolo, 2019. "Understanding the crowdfunding phenomenon and its implications for sustainability," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 138-148.
    10. Joern H. Block & Alexander Groh & Lars Hornuf & Tom Vanacker & Silvio Vismara, 2021. "The entrepreneurial finance markets of the future: a comparison of crowdfunding and initial coin offerings," Small Business Economics, Springer, vol. 57(2), pages 865-882, August.
    11. Franklin Allen & Xian Gu & Julapa Jagtiani, 2021. "A Survey of Fintech Research and Policy Discussion," Review of Corporate Finance, now publishers, vol. 1(3-4), pages 259-339, July.
    12. Joern H. Block & Massimo G. Colombo & Douglas J. Cumming & Silvio Vismara, 2018. "New players in entrepreneurial finance and why they are there," Small Business Economics, Springer, vol. 50(2), pages 239-250, February.
    13. Douglas Cumming & Michele Meoli & Silvio Vismara, 2021. "Does equity crowdfunding democratize entrepreneurial finance?," Small Business Economics, Springer, vol. 56(2), pages 533-552, February.
    14. Johan, Sofia & Reardon, Robert S., 2024. "The role of platform stakes in equity crowdfunding success," Finance Research Letters, Elsevier, vol. 69(PA).
    15. Pommet, Sophie & Sannajust, Aurélie & Xu, Qing, 2023. "Rating of equity crowdfunding platforms," Finance Research Letters, Elsevier, vol. 58(PD).
    16. Leda Nath & Lori Holder-Webb & Jeffrey Cohen, 2013. "Will Women Lead the Way? Differences in Demand for Corporate Social Responsibility Information for Investment Decisions," Journal of Business Ethics, Springer, vol. 118(1), pages 85-102, November.
    17. Sophie Pommet & Aurélie Sannajust & Qing Xu, 2023. "Rating of equity crowdfunding platforms," Post-Print hal-04533424, HAL.
    18. Alex Murray & Suresh Kotha & Greg Fisher, 2020. "Community-Based Resource Mobilization: How Entrepreneurs Acquire Resources from Distributed Non-Professionals via Crowdfunding," Organization Science, INFORMS, vol. 31(4), pages 960-989, July.
    19. Fisher, Greg & Kuratko, Donald F. & Bloodgood, James M. & Hornsby, Jeffrey S., 2017. "Legitimate to whom? The challenge of audience diversity and new venture legitimacy," Journal of Business Venturing, Elsevier, vol. 32(1), pages 52-71.
    20. Cai, Ye & Pan, Carrie H. & Statman, Meir, 2016. "Why do countries matter so much in corporate social performance?," Journal of Corporate Finance, Elsevier, vol. 41(C), pages 591-609.
    21. Cumming, Douglas J. & Johan, Sofia & Reardon, Robert S., 2025. "Institutional quality and success in U.S. equity crowdfunding," Research Policy, Elsevier, vol. 54(1).
    22. Thomas H. Allison & Blakley C. Davis & Jeremy C. Short & Justin W. Webb, 2015. "Crowdfunding in a Prosocial Microlending Environment: Examining the Role of Intrinsic versus Extrinsic Cues," Entrepreneurship Theory and Practice, , vol. 39(1), pages 53-73, January.
    23. Massimiliano Barbi & Valentina Febo & Giancarlo Giudici, 2023. "Community-level social capital and investment decisions in equity crowdfunding," Small Business Economics, Springer, vol. 61(3), pages 1075-1110, October.
    24. Troise, Ciro & Matricano, Diego & Sorrentino, Mario & Candelo, Elena, 2022. "Investigating investment decisions in equity crowdfunding: The role of projects' intellectual capital," European Management Journal, Elsevier, vol. 40(3), pages 406-418.
    25. Meoli, Michele & Vismara, Silvio, 2021. "Information manipulation in equity crowdfunding markets," Journal of Corporate Finance, Elsevier, vol. 67(C).
    26. Vismara, Silvio, 2019. "Sustainability in equity crowdfunding," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 98-106.
    27. Vincenzo Butticè & Silvio Vismara, 2022. "Inclusive digital finance: the industry of equity crowdfunding," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1224-1241, August.
    28. Gerrit K.C. Ahlers & Douglas Cumming & Christina Günther & Denis Schweizer, 2015. "Signaling in Equity Crowdfunding," Entrepreneurship Theory and Practice, , vol. 39(4), pages 955-980, July.
    29. Mansouri, Sasan & Momtaz, Paul P., 2022. "Financing sustainable entrepreneurship: ESG measurement, valuation, and performance," Journal of Business Venturing, Elsevier, vol. 37(6).
    30. Troise, Ciro & Tani, Mario & Dinsmore, John & Schiuma, Giovanni, 2021. "Understanding the implications of equity crowdfunding on sustainability-oriented innovation and changes in agri-food systems: Insights into an open innovation approach," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    31. Silvio Vismara, 2022. "Expanding corporate finance perspectives to equity crowdfunding," The Journal of Technology Transfer, Springer, vol. 47(6), pages 1629-1639, December.
    32. Silvio Vismara, 2016. "Equity retention and social network theory in equity crowdfunding," Small Business Economics, Springer, vol. 46(4), pages 579-590, April.
    33. Fasano, Francesco & Cappa, Francesco, 2022. "How do banking fintech services affect SME debt?," Journal of Economics and Business, Elsevier, vol. 121(C).
    34. Stefania Testa & Paolo Roma & Maria Vasi & Silvano Cincotti, 2020. "Crowdfunding as a tool to support sustainability‐oriented initiatives: Preliminary insights into the role of product/service attributes," Business Strategy and the Environment, Wiley Blackwell, vol. 29(2), pages 530-546, February.
    35. Salahaldin, Linda & Varma, Vineeth S. & Elayoubi, Salah Eddine, 2022. "When and how to intervene for saving an entrepreneur’s crowdfunding campaign," Finance Research Letters, Elsevier, vol. 50(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maiolini, Riccardo & Cappa, Francesco & Franco, Stefano & Quaratino, Giovanni Raimondo, 2024. "The impact of sustainable development goals in lending-based prosocial crowdfunding: A topic modeling analysis on the kiva platform," International Review of Financial Analysis, Elsevier, vol. 95(PB).
    2. Cumming, Douglas & Meoli, Michele & Rossi, Alice & Vismara, Silvio, 2024. "ESG and crowdfunding platforms," Journal of Business Venturing, Elsevier, vol. 39(1).
    3. Lars Hornuf & Johannes Voshaar, 2024. "What Is an Effective Signal in Crowdfunding? Evidence from Expert Researchers and a Meta-Study," CESifo Working Paper Series 11501, CESifo.
    4. Massimo G. Colombo & Benedetta Montanaro & Silvio Vismara, 2023. "What drives the valuation of entrepreneurial ventures? A map to navigate the literature and research directions," Small Business Economics, Springer, vol. 61(1), pages 59-84, June.
    5. Massimiliano Barbi & Valentina Febo & Giancarlo Giudici, 2023. "Community-level social capital and investment decisions in equity crowdfunding," Small Business Economics, Springer, vol. 61(3), pages 1075-1110, October.
    6. Mataigne, Virginie & Meoli, Michele & Vanacker, Tom & Vismara, Silvio, 2025. "False signaling by platform team members and post-campaign venture outcomes: Evidence from an equity crowdfunding platform," Journal of Business Venturing, Elsevier, vol. 40(1).
    7. Dinh, Jeannette Mai & Isaak, Andrew Jay & Yahyaoui, Yasmine, 2024. "Investing for good – Uncovering crowd investors' motivations to participate in sustainability-oriented crowdlending," Technological Forecasting and Social Change, Elsevier, vol. 207(C).
    8. Vincenzo Butticè & Silvio Vismara, 2022. "Inclusive digital finance: the industry of equity crowdfunding," The Journal of Technology Transfer, Springer, vol. 47(4), pages 1224-1241, August.
    9. Hörisch, Jacob & Tenner, Isabell, 2020. "How environmental and social orientations influence the funding success of investment-based crowdfunding: The mediating role of the number of funders and the average funding amount," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    10. Ciro Troise & Guido Giovando & Fauzia Jabeen & Stefano Bresciani, 2024. "Unveiling the role of entrepreneurial teams in the equity crowdfunding journey," Small Business Economics, Springer, vol. 63(4), pages 1517-1538, December.
    11. Francesco Cappa & Michele Pinelli & Riccardo Maiolini & Maria Isabella Leone, 2021. "“Pledge” me your ears! The role of narratives and narrator experience in explaining crowdfunding success," Small Business Economics, Springer, vol. 57(2), pages 953-973, August.
    12. Penz, R. Frederic & Hörisch, Jacob & Tenner, Isabell, 2022. "Investors in environmental ventures want good money—and a clean conscience: How framing, interest rates, and the environmental impact of crowdlending projects influence funding decisions," Technological Forecasting and Social Change, Elsevier, vol. 182(C).
    13. Maiolini, Riccardo & Nasta, Luigi, 2024. "Crowdfunding for sustainability: How environmental activism moderates support for B2B and B2C campaigns," Finance Research Letters, Elsevier, vol. 69(PB).
    14. Douglas Cumming & Satish Kumar & Weng Marc Lim & Nitesh Pandey, 2023. "Mapping the venture capital and private equity research: a bibliometric review and future research agenda," Small Business Economics, Springer, vol. 61(1), pages 173-221, June.
    15. Sandra Correia & Miguel Sousa & Elísio Brandão, 2024. "What do we know about the choices of entrepreneurs before the equity crowdfunding campaign?," Small Business Economics, Springer, vol. 63(4), pages 1471-1501, December.
    16. Berns, John P. & Jia, Yankun & Gondo, Maria, 2022. "Crowdfunding success in sustainability-oriented projects: An exploratory examination of the crowdfunding of 3D printers," Technology in Society, Elsevier, vol. 71(C).
    17. Aurélien Petit & Peter Wirtz, 2022. "Experts in the crowd and their influence on herding in reward-based crowdfunding of cultural projects," Small Business Economics, Springer, vol. 58(1), pages 419-449, January.
    18. Johan, Sofia & Reardon, Robert S., 2024. "The role of platform stakes in equity crowdfunding success," Finance Research Letters, Elsevier, vol. 69(PA).
    19. Vincenzo Butticè & Diego Useche, 2022. "Crowdfunding to overcome the immigrant entrepreneurs’ liability of outsidership: the role of internal social capital," Small Business Economics, Springer, vol. 59(4), pages 1519-1540, December.
    20. Maximilian Goethner & Sebastian Luettig & Tobias Regner, 2021. "Crowdinvesting in entrepreneurial projects: disentangling patterns of investor behavior," Small Business Economics, Springer, vol. 57(2), pages 905-926, August.

    More about this item

    Keywords

    Sustainable crowdfunding; Sustainability; Crowdfunding platforms; Equity crowdfunding; Digital finance; Entrepreneurial finance; Cultural contexts;
    All these keywords.

    JEL classification:

    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:finlet:v:70:y:2024:i:c:s1544612324013746. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/frl .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.