Geographic Distance and Reward Crowdfunding Donation

Wesley Mendes-Da-Silva, Luciano Rossoni, Eduardo Francisco and Cristiane C. Gattaz ()
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Wesley Mendes-Da-Silva: Sao Paulo School of Business Administration (FGV/EAESP)
Luciano Rossoni: UniGranRio
Eduardo Francisco: Fundação Getulio Vargas at São Paulo (FGV/EAESP)
Cristiane C. Gattaz: IC² Institute/University of Texas at Austin

Chapter Chapter 9 in Individual Behaviors and Technologies for Financial Innovations, 2019, pp 189-214 from Springer

Abstract: Abstract This chapter describes the analysis of a large crowdfunding platform to examine pledges to music production projects and assess the relation between the fundraising accumulation period, the donor-entrepreneur distance, and the donors’ propensity to back projects. Our results suggest a significantly negative association between distance and the value of capital pledged to projects, which is consistent with the notion that the entrepreneur’s network of close contacts might play a central role in funding. Furthermore, our results contradict the idea that crowdfunding reduces the inhibiting effect of donor-entrepreneur distance. In addition, the results show that a long project exposure is associated with higher values of pledges. These results suggest practical implications for the study of crowdfunding as a financing platform. This study contributes to the literature on the use of crowdfunding as an alternative funding source in a major emerging market.

Keywords: Fintech; Crowdfunding; Fundraising; Social networks; A13; D85; L14 (search for similar items in EconPapers)
Date: 2019
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-319-91911-9_9

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DOI: 10.1007/978-3-319-91911-9_9

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