IDEAS home Printed from https://ideas.repec.org/p/nip/nipewp/2-2022.html
   My bibliography  Save this paper

Tone of Mass Media News Affect Pledge Amounts in Reward Crowdfunding Campaign

Author

Listed:
  • Wesley Mendes-da-Silva

    (São School of Business Administration of the Fundação Getulio Vargas)

  • Israel José dos Santos Felipe

    (Federal University of Ouro Preto/Brazil and NIPE/Portugal)

  • Cristiana Cerqueira Leal

    (School of Economics and Management & NIPE – Center for Research in Economics and Management, University of Minho)

  • Marcelo Otone Aguiar

    (Federal University of Espirito Santo)

Abstract

We study whether the tone of the daily news in mass media, used as a proxy for market sentiment, affects the typical daily pledge amount in reward crowdfunding campaigns. Based on unique data from over 350,000 pledges in reward crowdfunding campaigns in over 2,600 cities in Brazil, we find that market sentiment affects the willingness of backers to make larger pledges. Our unprecedented results reveal that good news induces pledges of larger amounts. The effect of tone over pledge amounts is inhibited by the geographic distance backer-entrepreneur, and it is reinforced by the income inequality in the pledger’s city.

Suggested Citation

  • Wesley Mendes-da-Silva & Israel José dos Santos Felipe & Cristiana Cerqueira Leal & Marcelo Otone Aguiar, 2022. "Tone of Mass Media News Affect Pledge Amounts in Reward Crowdfunding Campaign," NIPE Working Papers 2/2022, NIPE - Universidade do Minho.
    • Handle: RePEc:nip:nipewp:2/2022
    as

    Download full text from publisher

    File URL: http://repositorium.sdum.uminho.pt/handle/1822/75887
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ye Liu & Ke Zhang & Weili Xue & Ziyu Zhou, 2024. "Crowdfunding innovative but risky new ventures: the importance of less ambiguous tone," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 10(1), pages 1-43, December.

    More about this item

    Keywords

    Natural Language Processing; Crowdfunding; Media; Investor sentiment;
    All these keywords.

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • I31 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - General Welfare, Well-Being

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:nip:nipewp:2/2022. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: NIPE (email available below). General contact details of provider: https://edirc.repec.org/data/nipampt.html .

    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.