Investor Attention and Crowdfunding Performance

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dc.contributor.authorHu, Lin
dc.contributor.authorLi, Kun
dc.contributor.authorWu, Zhenhua
dc.contributor.authorGu, Bin
dc.date.accessioned2022-12-27T19:21:52Z
dc.date.available2022-12-27T19:21:52Z
dc.date.issued2023-01-03
dc.description.abstractToday's digital era facilitates the rise of crowdfunding markets by allowing entrepreneurs to seek funding directly from crowds. Crowdfunding, as IT-enabled disintermediation, lowers entry barriers for crowds to invest in business projects and entrepreneurs to obtain funding, yet may exacerbate information asymmetry and absorb investor attention to process information about the potential projects. We develop a model wherein investors with limited attention aggregate personalized information about (reward-based) crowdfunding projects and conduct comparative analyses on how rises in investors’ unit attention cost (associated with greater distractions) affect investor attention, investment decisions, and crowdfunding performance. We then exploit a novel measure of distraction---news pressure---to test the effects of distraction on investor engagement and crowdfunding performance empirically, and the results support our model predictions.
dc.format.extent10
dc.identifier.doi10.24251/HICSS.2023.775
dc.identifier.isbn978-0-9981331-6-4
dc.identifier.urihttps://hdl.handle.net/10125/103409
dc.language.isoeng
dc.relation.ispartofProceedings of the 56th Hawaii International Conference on System Sciences
dc.rightsAttribution-NonCommercial-NoDerivatives 4.0 International
dc.rights.urihttps://creativecommons.org/licenses/by-nc-nd/4.0/
dc.subjectStrategy, Information, Technology, Economics, and Society (SITES)
dc.subjectcrowdfunding; attention economy; distraction; attention-driven herding
dc.titleInvestor Attention and Crowdfunding Performance
dc.type.dcmitext
prism.startingpage6409

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