Are sustainability-oriented investors different? Evidence from equity crowdfunding

Lars Hornuf (), Eliza Stenzhorn and Tim Vintis ()
Additional contact information
Lars Hornuf: University of Bremen
Tim Vintis: University of Bremen

The Journal of Technology Transfer, 2022, vol. 47, issue 6, No 3, 1662-1689

Abstract: Abstract In this article, we examine how investor motives affect investment behavior in equity crowdfunding. In particular, we compare the investment behavior of sustainability-oriented with ordinary crowd investors on six leading equity crowdfunding platforms in Austria and Germany and investigate whether they suffer from a default shock that was recently identified by Dorfleitner et al. (2019). In general, we find evidence of a default shock in equity crowdfunding that occurs immediately after the event or if investors experience more than two insolvencies. Moreover, we find that sustainability-oriented investors pledge larger amounts of money and invest in more campaigns than ordinary crowd investors. The results also suggest that sustainability-oriented crowd investors care about non-financial returns, as they react more sensitively after experiencing a default in their equity crowdfunding portfolios, which indicates that they suffer beyond the pure financial loss. These findings contribute to recent literature on equity crowdfunding, socially responsible investing, and how individual investment motives and personal experiences affect investment decisions.

Keywords: Equity crowdfunding; Individual investor behavior; Entrepreneurial finance; Social; ethical; and environmental investing; Socially responsible investing (search for similar items in EconPapers)
JEL-codes: G11 G24 K22 M13 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://link.springer.com/10.1007/s10961-021-09896-9 Abstract (text/html)
Access to full text is restricted to subscribers.

Related works:
Working Paper: Are Sustainability-Oriented Investors Different? Evidence from Equity Crowdfunding (2020)
Working Paper: Are Sustainability-Oriented Investors Different? Evidence from Equity Crowdfunding (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:kap:jtecht:v:47:y:2022:i:6:d:10.1007_s10961-021-09896-9

Ordering information: This journal article can be ordered from
http://www.springer. ... nt/journal/10961/PS2

DOI: 10.1007/s10961-021-09896-9

Access Statistics for this article

The Journal of Technology Transfer is currently edited by Albert N. Link, Donald S. Siegel, Barry Bozeman and Simon Mosey

More articles in The Journal of Technology Transfer from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().