When personality pays: observer rating of personality and financial success of equity crowdfunded startups

Andrew Isaak, Julia Neuhaus and Denefa Bostandzic

EconStor Open Access Articles and Book Chapters, 2024, vol. 26, issue 2, 161 pages

Abstract: This study investigates the value of third-party ratings of personality in investor pitches for predicting the investment intention and successful equity crowdfunding of U.S.-based startups. Based on 1175 ratings of 100 randomly selected investor pitch videos, we find that not only do investors’ impressions of entrepreneurs Big Five personality traits predict investment intention but that several of these also predict entrepreneurs’ actual crowdfunding success (particularly: openness, conscientiousness and extraversion). The study contributes to our knowledge of the links between (perceived) individual-level traits of the entrepreneur and their ability to finance a venture, a key challenge in the early stages of startups.

Keywords: Personality; Equity Crowdfunding; Big Five Personality Traits; Regression; Third Party Ratings; Investor Pitch; Venture Capital (search for similar items in EconPapers)
JEL-codes: C31 C83 D26 D91 G24 G41 M13 (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/329770/1/When-Personality-Pays.pdf (application/pdf)

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:zbw:espost:329770

Access Statistics for this article

More articles in EconStor Open Access Articles and Book Chapters from ZBW - Leibniz Information Centre for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().