Are sustainability-oriented investors different? Evidence from equity crowdfunding

Hornuf, Lars; Stenzhorn, Eliza; Vintis, Tim

doi:10.1007/s10961-021-09896-9

Cited by 26 publications

(11 citation statements)

References 83 publications

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“…Because we do not know the identities of the investors of the two platforms, we cannot report the extent of multihoming. Hornuf, Stenzhorn et al (2021) have recently shown that around one-quarter of investors on three equity crowdfunding platforms from the same corporate group participated in more than one platform. In our case, we consider two completely independent platforms, each of which requires registration and authentication to make investments.…”

Section: Datamentioning

confidence: 99%

The local bias in equity crowdfunding: Behavioral anomaly or rational preference?

Hornuf

Schmitt

Stenzhorn

2022

Economics Manag Strategy

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We use data on individual investment decisions to analyze whether investors in equity crowdfunding direct their investments to local firms and whether specific investor types can explain this behavior. We then examine whether investments exhibiting a local bias are more or less likely to fail. We show that investors exhibit a local bias, even when we control for those with personal ties to the entrepreneur. In particular, we find that angel-like investors and investors with personal ties to the entrepreneur exhibit a larger local bias than regular crowd investors. Well-diversified investors are less likely to suffer from this behavioral anomaly than investors with personal ties to the entrepreneur. Overall, we show that investors who direct their investments to local firms more often pick start-ups that run into insolvency, which indicates that some local investments in equity crowdfunding constitute a behavioral anomaly rather than a rational preference. Moreover, our results reveal that platform design is an important factor determining the scope of the behavior anomaly.

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Section: Datamentioning

confidence: 99%

The local bias in equity crowdfunding: Behavioral anomaly or rational preference?

Hornuf

Schmitt

Stenzhorn

2022

Economics Manag Strategy

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“…Before ECFPs, angel investments and venture capital were the sources of financing for the initial stages of projects (Hornuf et al, 2021), today they compete with each other (Allon & Babich, 2020). Some of the most popular ECFPs worldwide are Mintos, MicroVentures, StartEngine, Broota, Dozen, and AngelList, among others.…”

Section: Equity Crowdfunding Platformsmentioning

confidence: 99%

Crowdfunding platforms: a systematic literature review and a bibliometric analysis

Mora-Cruz

Palos-Sánchez

2023

Int Entrep Manag J

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Due to the financial crisis caused by the COVID-19 pandemic, entrepreneurs and small businesses have had multiple difficulties accessing conventional types of financing. Crowdfunding platforms have gained popularity as an alternative means of online financing. The main objective of this research is to analyze the most important articles that may influence future studies on crowdfunding platforms in Latin America. This article analyzes the Scopus and Web of Science databases considering three of the four categories of crowdfunding based on capital flows: Reward, Equity, and Lending, using a systematic review of the literature and bibliometric analysis. This research resulted in a total of 1032 articles which, after applying the appropriate criteria, resulted in 55 selected articles. The results show that the number of studies conducted in the field of crowdfunding platforms is increasing. Crowdfunding platforms provide a great opportunity for entrepreneurs to obtain alternative financing and a new way for investors to invest their capital. Future lines of research include conducting studies that involve a stronger focus on the technology used in crowdfunding platforms. With systematized access to information, the different actors can understand how the dynamics of crowdfunding platforms can stimulate the development of business projects, as well as the decision-making factor when investing. This document is of great interest to researchers and professionals who wish to increase their knowledge of crowdfunding platforms, especially those of Reward, Equity, and Lending, in addition to gaining knowledge on relevant conclusions and suggestions for future research.

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“…Research in recent years indicates the direct impact of CSR and performance on ESG indicators, on customer satisfaction and therefore on the creation of long-term value and financial performance of each company, criteria that also influence the investors' decisions [21]. Hornuf et al [22] pointed out that companies focusing their performance mainly towards social indices in order to achieve increased consumer satisfaction end up attracting more investors. Similarly, the research by Mehta et al [23] identified a positive relationship between firms' environmental indicators and investors' willingness to invest in them in mutual funds.…”

Section: Esg Indicators and Their Association To Csr And Customer Sat...mentioning

confidence: 99%

ESGs and Customer Choice: Some Empirical Evidence

et al. 2023

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The goal of this paper is to determine whether a company’s performance on environmental, social, and governance (ESG) indicators influences customer choice, and if so, which ones are the most important, as well as whether the COVID-19 pandemic had an effect on changing this hierarchy. Additionally, it intends to investigate the influence of regional and demographic factors on its formation. To achieve this goal, primary data were gathered in Greece via a questionnaire survey. According to the findings, a company’s performance on ESGs influences consumer choice, with an emphasis on environmental and social indicators. It was also demonstrated that a company’s social indicator performance is relevant to both urban and suburban customers. Customers in urban areas place a higher value on a company’s performance in governance indicators than those in suburban areas, who place a higher value on a company’s performance in environmental indicators. Finally, no significant COVID-19 effect was evidenced on the findings, although the emphasis on “social indicators” was further reinforced, probably due to the increase in social awareness of citizens during the pandemic.

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Are sustainability-oriented investors different? Evidence from equity crowdfunding

Cited by 26 publications

References 83 publications

The local bias in equity crowdfunding: Behavioral anomaly or rational preference?

The local bias in equity crowdfunding: Behavioral anomaly or rational preference?

Crowdfunding platforms: a systematic literature review and a bibliometric analysis

ESGs and Customer Choice: Some Empirical Evidence

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