Social media marketing for equity crowdfunding: Which posts trigger investment decisions?

Maik Eisenbeiss, Sven A. Hartmann and Lars Hornuf

Finance Research Letters, 2023, vol. 52, issue C

Abstract: Based on 26,883 investment decisions, we examine the influence of social media marketing on crowd participation in equity crowdfunding. We distinguish between different types of informative and persuasive posts on Facebook and Twitter. Informative posts provide investors with information about the crowdfunding campaign; persuasive posts do not, but rather aim to directly influence an investor’s decision-making process. We find that both types of posts have a positive impact on the number of investments. However, persuasive posts also increase the amount of an investment if they contain a statement about the previous investment success of the campaign and signal to the crowd that they are not investing alone.

Keywords: Equity crowdfunding; Entrepreneurial finance; Social media; Investor communication (search for similar items in EconPapers)
JEL-codes: G11 G20 M13 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:finlet:v:52:y:2023:i:c:s1544612322005475

DOI: 10.1016/j.frl.2022.103370

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