Determinants of Individual Investment Decisions in Investment-Based Crowdfunding

Fabrice Herve, Elodie Manthé (), Aurélie Sannajust () and Armin Schwienbacher
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Elodie Manthé: WiSEED
Aurélie Sannajust: COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne

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Abstract: We investigate determinants of investment decisions in investment-based (equity and real estate) crowdfunding campaigns, using a novel investment-, investor- and campaign-level database. We find that women invest less in the riskiest investments but more in safer ones. These findings are better explained by differences in risk aversion than differences in overconfidence between men and women. Investors located in an area considered more "sociable" (socially friendly) also invest more, especially if the investor is a woman. Overall, the findings contribute to our understanding of how investment-based crowdfunding can be a viable source of entrepreneurial finance and how entrepreneurs' campaign decisions affect investor participation in this new form of entrepreneurial finance.

Keywords: Entrepreneurial finance; Startup finance; Investment decision; Equity Crowdfunding; Crowdfunding (search for similar items in EconPapers)
Date: 2019
Note: View the original document on HAL open archive server: https://ube.hal.science/hal-02065048v1
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Citations: View citations in EconPapers (19)

Published in Journal of Business Finance and Accounting, 2019, 46 (5-6), pp.762-783. ⟨10.1111/jbfa.12372⟩

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Related works:
Journal Article: Determinants of individual investment decisions in investment‐based crowdfunding (2019)
Working Paper: Determinants of Individual Investment Decisions in Investment-Based Crowdfunding (2018)
Working Paper: Determinants of Individual Investment Decisions in Investment-Based Crowdfunding (2018)
Working Paper: Determinants of Individual Investment Decisions in Investment-Based Crowdfunding (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-02065048

DOI: 10.1111/jbfa.12372

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