The life-cycle influence mechanism of the determinants of financing performance: an empirical study of a Chinese crowdfunding platform

Yue Chen, Wentao Zhang, Xiangbin Yan () and Jiahua Jin
Additional contact information
Yue Chen: Guangdong University of Technology
Wentao Zhang: Harbin Institute of Technology
Xiangbin Yan: University of Science and Technology Beijing
Jiahua Jin: University of Science and Technology Beijing

Review of Managerial Science, 2020, vol. 14, issue 1, No 11, 287-309

Abstract: Abstract Employing a unique data set that incorporates development events for 243 reward-based projects on one of the biggest crowdfunding platforms in China, JingDong Crowdfunding, this paper examines two vital aspects related to the financing performance of crowdfunding projects: the influencing factors and the change laws of the effects of the determinants. The econometric analysis results of individual fixed effects models with instrumental variables reveal that the fundraiser’s online social capital, number of description images and project popularity, as well as the herding effects that exist in the financing process, have significant positive impacts on financing performance, while the funding goal has negative impact. More importantly, the data highlights the life-cycle features of each determinant’s influence in the financing process. Campaign popularity and herding effects both have progressively increasing influences on fundraising performance, while online social capital of the fundraiser and the number of description images exercise declining effects over it. One notable finding is that the funding goal’s effect on the fundraising outcome shifts from decreasing positive in the growth stage towards increasing negative in the stable and maturity stages. The findings are of great guiding significance for improving campaign performance and development of the crowdfunding industry.

Keywords: Reward-based crowdfunding; Financing performance; Life-cycle theory; Panel data (search for similar items in EconPapers)
JEL-codes: C33 D83 D91 G02 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://link.springer.com/10.1007/s11846-018-0295-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
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:spr:rvmgts:v:14:y:2020:i:1:d:10.1007_s11846-018-0295-y

Ordering information: This journal article can be ordered from
http://www.springer.com/business/journal/11846

DOI: 10.1007/s11846-018-0295-y

Access Statistics for this article

Review of Managerial Science is currently edited by R. Ewert and W. Kürsten

More articles in Review of Managerial Science from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().