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Individual’s financial investment decision-making in reward-based crowdfunding: evidence from China

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  • Yasir Shahab
  • Zhiwei Ye
  • Yasir Riaz
  • Collins G. Ntim

Abstract

This article extends the work of Cecere et al. (Appl. Econ., 49(57): 5802–5813, 2017) and explores the antecedents of backers’ decision to invest in projects from eight categories on a reward-based crowdfunding platform in China. We extract data from 2011 to 2016 from the pioneer Chinese reward-based crowdfunding site ‘Demohour’. Our empirical investigation using OLS reveals that feedback score, social capital (followers on Weibo, project sharing on social media) and project quality (number of updates) are key motivating factors in investment decision and subsequently, project success or failure. Robustness tests also confirm the findings.

Suggested Citation

  • Yasir Shahab & Zhiwei Ye & Yasir Riaz & Collins G. Ntim, 2019. "Individual’s financial investment decision-making in reward-based crowdfunding: evidence from China," Applied Economics Letters, Taylor & Francis Journals, vol. 26(4), pages 261-266, February.
    • Handle: RePEc:taf:apeclt:v:26:y:2019:i:4:p:261-266
    DOI: 10.1080/13504851.2018.1464643
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    Citations

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    Cited by:

    1. Emil Adamek & Jan Janku, 2022. "What Drives Small Business Crowdfunding? Impact of Macroeconomic and Financial Factors," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 72(2), pages 172-196, June.
    2. Yasir Shahab & Yasir Riaz & Collins G. Ntim & Zhiwei Ye & Qingjing Zhang & Ran Feng, 2021. "Online feedback and crowdfunding finance in China," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 26(3), pages 4634-4652, July.
    3. Xu, Yang & Zhou, Qiang & Wang, Xu, 2023. "Joint price and quality optimization strategy in crowdfunding campaign," International Journal of Production Economics, Elsevier, vol. 263(C).
    4. Elrashidy, Zeinab & Haniffa, Roszaini & Sherif, Mohamed & Baroudi, Sarra, 2024. "Determinants of reward crowdfunding success: Evidence from Covid-19 pandemic," Technovation, Elsevier, vol. 132(C).
    5. Xiaobei Liang & Xiaojuan Hu & Jiang Jiang, 2020. "Research on the Effects of Information Description on Crowdfunding Success within a Sustainable Economy—The Perspective of Information Communication," Sustainability, MDPI, vol. 12(2), pages 1-36, January.
    6. Bernardino, Susana & Freitas Santos, José & Oliveira, Sílvie, 2021. "The impact of social media and e-WOM on the success of reward-based crowdfunding campaigns," Cuadernos de Gestión, Universidad del País Vasco - Instituto de Economía Aplicada a la Empresa (IEAE).
    7. Peter Konhäusner & Bing Shang & Dan-Cristian Dabija, 2021. "Application of the 4Es in Online Crowdfunding Platforms: A Comparative Perspective of Germany and China," JRFM, MDPI, vol. 14(2), pages 1-19, January.
    8. Peng, Jing & Zhang, Jianghua & Nie, Tengfei & Zhu, Yangguang & Du, Shaofu, 2020. "Pricing and package size decisions in crowdfunding," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).

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