 The role of signals and third-party endorsements in reward-based crowdfunding: does the funding goal matter?Soumodip Sarkar, José Jacinto Bilau and Jorge Pires International Journal of Entrepreneurial Venturing, 2023, vol. 15, issue 3, 232-255 Abstract: This study uses the twin lenses of signalling theory and certification theory, to explore the role of signals and third-party endorsement in reward-based crowdfunding success. We follow 339 rewards-based crowdfunding campaigns to capture campaign characteristics and funding outcomes. The study provides an insight into on the role of signals and third-party endorsement, extending extant knowledge to reveal that both signals' variables and third-party endorsement variables influence a project success. We also find a differential role of these variables according to the funding goal. Overall, our paper's contribution in the context of reward-based crowdfunding assumes great relevance given the prevalence of information asymmetries in crowdfunding compared to other more traditional financing mechanisms. Project founders can make use of the results to improve the information related to their projects to increase the chance to have a project successfully funded. Results are also relevant for crowdfunding platforms itself that might automatically assess the chance of successful funding of projects. Keywords: crowdfunding; entrepreneurial finance; new ventures; signalling theory; certification theory. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijeven:v:15:y:2023:i:3:p:232-255 Access Statistics for this article More articles in International Journal of Entrepreneurial Venturing from Inderscience Enterprises Ltd |
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