Investor Retention in Equity Crowdfunding

Zakhlebin, Igor; Horvát, Emőke-Ágnes

doi:10.1145/3292522.3326037

Cited by 3 publications

(6 citation statements)

References 40 publications

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“…Regarding H1a, we used ProfitLanguageRatio, measured as experienced profit language, to denote the ratio of profitability keywords in the last loan's description, which is provided by the project initiators . Some previous studies have found that the last project description affects the next lending or investment in the context of crowdfunding (Zakhlebin and Horv at, 2019;Zhao et al, 2020). Specifically, the keywords related to external profitability in the loan description are accompanied by the possibility of receiving a return (Berns et al, 2020;Zhang and Chen, 2019).…”

Section: Methodsmentioning

confidence: 99%

“…In contrast, an expired loan is a negative feedback in identifying outstanding projects, weakening the lender's psychological need and competence (Vallerand and Reid, 1984), which indicates that the lender cannot be competent in this kind of prosocial activity (Chen and Jang, 2010). Previous studies have found that investors who tend to quit have a lower success rate in their investment than those who have a continuous investment (Liao et al, 2017;Zakhlebin and Horv at, 2019). Particularly, we find that the repayment rates for a few online prosocial lending platforms are over 94%, such as Kiva and Rang De (Ravishankar, 2021), indicating that the funded lending experience can make a bigger impact on the lender's retention decision.…”

Section: Inviteementioning

confidence: 99%

“…Zhao et al, 2022a). Researchers in the IS discipline have broadly examined all types of crowdfunding, they are equity-based and lending-based crowdfunding, rewardbased crowdfunding, donation-based crowdfunding and online prosocial lending, which are displayed in Table 1 (Allison et al, 2015;Althoff and Leskovec, 2015;Burtch et al, 2014;Xiao and Yue, 2021;Zakhlebin and Horv at, 2019;Zhang et al, 2020Zhang et al, , 2022Zhao et al, 2020). More specifically, Belleflamme et al (2014) suggested that individual equity-based or lendingbased crowdfunding is a way to develop a venture through the process of fundraising.…”

Section: Theory and Hypotheses Development 21 Online Crowdfunding And...mentioning

confidence: 99%

“…, 2015; Althoff and Leskovec, 2015; Burtch et al. , 2014; Xiao and Yue, 2021; Zakhlebin and Horvát, 2019; Zhang et al ., 2020, 2022; Zhao et al. , 2020).…”

Section: Theory and Hypotheses Developmentmentioning

confidence: 99%

“…Second, many studies about retention have been carried out in the context of crowdfunding. For example, Zakhlebin and Horvát (2019) looked at equity-based crowdfunding and confirmed that more investments, a higher success rate and more investment novelties positively affect investor retention. As for reward-based crowdfunding, Liao et al.…”

Section: Theory and Hypotheses Developmentmentioning

confidence: 99%

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Lender retention of online prosocial lending: a self-determination perspective

Zhang

Cheng²,

Liu³

et al. 2022

INTR

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PurposeProsocial lending in online crowdfunding has flourished in recent years, and it has become a new way to fundraise for philanthropy. However, there is almost a 70% user attrition rate in crowdfunding. The purpose of this study is to understand what the lender’s lending experience and social connection influence lender retention of online prosocial lending from a self-determination perspective.Design/methodology/approachDrawing on self-determination theory (SDT), this research utilizes a quantifiable method for factors of the lender's lending experience and social connection. Additionally, the research constructs economic models to explore the impacts of these factors acting as the necessary conditions for basic psychological needs on lender retention, using a large-scale sample of over 380,000 lenders from Kiva.FindingsThe results indicate that, from the lender's lending experience aspect, the loan narratives with more profit language in the last lending and the failure of past participation are negatively related to lender retention. Regarding the lender's social connection aspect, their friends or small lending teams are positively related to lender retention, while whether they are invited and lending team size show negative influence. Furthermore, results indicate the moderating effects of the disclosure of lending motivation.Originality/valueThis research explores the mechanism of lender retention of online prosocial lending, providing a self-determination perspective about how previous experience influences long-term lending behavior. The study offers significant implications for the literature on online philanthropy, SDT and user retention of online platforms. At the same time, the study provides an understanding of the effects of different aspects of SDT.

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Section: Methodsmentioning

confidence: 99%

Section: Inviteementioning

confidence: 99%

Section: Theory and Hypotheses Development 21 Online Crowdfunding And...mentioning

confidence: 99%

“…, 2015; Althoff and Leskovec, 2015; Burtch et al. , 2014; Xiao and Yue, 2021; Zakhlebin and Horvát, 2019; Zhang et al ., 2020, 2022; Zhao et al. , 2020).…”

Section: Theory and Hypotheses Developmentmentioning

confidence: 99%

Section: Theory and Hypotheses Developmentmentioning

confidence: 99%

See 3 more Smart Citations

Lender retention of online prosocial lending: a self-determination perspective

Zhang

Cheng²,

Liu³

et al. 2022

INTR

View full text Add to dashboard Cite

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Understanding (Ir)rational Herding Online

Dambanemuya,

Wachs,

Horvat

2023

Proceedings of the ACM Collective Intelligence Conference

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Exploring Public Perceptions of Sharia Securities Crowdfunding

Arifin,

Fuadi,

Agustina

et al. 2024

Advances in Finance, Accounting, and Economics

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This research aims to assess public attitudes towards a novel investing approach known as Islamic securities crowdsourcing, drawing on established context. Researchers employed the Unified Theory of Acceptance and Use of Technology (UTAUT) methodology to maintain this viewpoint. This research is based on the integrated UTAUT. The data were analyzed using multiple linear regression models in SPSS. The primary findings indicate that Performance Expectancy, Social Influence, and Facilitating Conditions strongly influence an individual's inclination to invest in securities crowdsourcing. Effort Expectancy does not significantly influence the decision to invest in stocks crowdsourcing. The results indicate that cooperation between the government and securities crowdfunding institutions is essential for establishing a well-organized investment environment and enhancing sharia financial literacy. This study enhances sharia financial literacy in securities crowdfunding and offers an overview of these institutions in the advancement of securities crowdfunding.

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Investor Retention in Equity Crowdfunding

Cited by 3 publications

References 40 publications

Lender retention of online prosocial lending: a self-determination perspective

Lender retention of online prosocial lending: a self-determination perspective

Understanding (Ir)rational Herding Online

Exploring Public Perceptions of Sharia Securities Crowdfunding

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