Profit allocation in investment-based crowdfunding with investors of dynamic entry times

Yang, Y; Bi, Gongbing

doi:10.1016/j.ejor.2019.07.016

Cited by 28 publications

(20 citation statements)

References 31 publications

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“…In particular, the degree of funders' herding behavior has been found to have a significant effect on the success of rewards, investments, and lending (Bretschneider, Knaub, and Wieck 2014;Bretschneider and Leimeister 2017;Chan et al 2020;Yang, Bi, and Liu 2020). As a moderator, herding behavior has been found to strengthen the associations between internal and external motivation and investments for start-up crowdfunding (Bretschneider, Knaub, and Wieck 2014).…”

Section: Moderating Role Of Herding Behaviormentioning

confidence: 99%

“…It has also been found that herding behavior can reinforce the association between backers' motivation and crowdfunding participation (Bretschneider and Leimeister 2017). Higher levels of herding have been found to influence early crowdfunder behavior in investmentbased crowdfunding more than lower levels of herding (Yang, Bi, and Liu 2020). Further, past research has used dual process models to better understand rewardbased crowdfunding performance depending on herding behavior (Allison et al 2017;Chan et al 2020).…”

Section: Moderating Role Of Herding Behaviormentioning

confidence: 99%

“…Herding behavior has also been found to have a moderating effect on supporters' participation in crowdfunding (Bretschneider, Knaub, and Wieck 2014;Bretschneider and Leimeister 2017;Chan et al 2020;Yang, Bi, and Liu 2020). In particular, the South Korean (hereafter Korea/n) government has attempted to stimulate tourism and visitor economy crowdfunding programs by providing funding, consulting, educating, and holding events for startups and venture businesses (E. J.…”

Section: Introductionmentioning

confidence: 99%

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The Effect of Herding Behaviors on Dual-Route Processing of Communications Aimed at Tourism Crowdfunding Ventures

Kim

Petrick

2020

Journal of Travel Research

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Communications can be integral in persuading funders to invest in visitor economy crowdfunding. Despite the important role of diverse communications on consumer persuasion, research on the effectiveness of persuasive communications related to crowdfunding ventures has been limited. To bridge the gap, this study aims to verify an elaboration likelihood model to better understand the role of dual-route persuasive communications. Seven hypotheses related to argument quality, source credibility, benefit of crowdfunding, attachment to fundraiser and platform, and continued crowdfunding were examined, using herding behavior as a moderator. The findings revealed that argument quality had a substantial impact on benefit. Further, source credibility was found to have positive impacts on benefit and attachment; benefit had a significant effect on attachment and continued crowdfunding, and attachment had the strongest influence on continued crowdfunding. Additionally, herding behavior was found to moderate five of the six hypotheses.

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Section: Moderating Role Of Herding Behaviormentioning

confidence: 99%

Section: Moderating Role Of Herding Behaviormentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The Effect of Herding Behaviors on Dual-Route Processing of Communications Aimed at Tourism Crowdfunding Ventures

Kim

Petrick

2020

Journal of Travel Research

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“…Crowdfunding is an innovative fundraising method for many entrepreneurs (Yang et al 2020 ; Borrero-Dominguez et al 2020 ). Traditional fundraising methods are very difficult for most of startups because they cannot propose equivalent values (Ramadani 2009 ).…”

Section: Literature Reviewmentioning

confidence: 99%

The key successful factors of video and mobile game crowdfunding projects using a lexicon-based feature selection approach

Chen

Chang

Chen

et al. 2021

J Ambient Intell Human Comput

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The emergence of crowdfunding has given many capital demanders a new fund-raising channel, but the overall project success rate is very low. Many scholars have begun to discover key suscessful factors of crowdfunding projects. Previous studies have used questionnaires survey to identify important project features. In addition to requiring a lot of manpower and time, there may also be sampling bias. Moreover, related studies also reported that the project description will affect the success of the crowdfunding project, but there is no research to tell fundraisers which success factors should be included in the content of the project description. Besides, in recent years, game crowdfunding projects have been attracted lots of attention in terms of total fundraising amount and number of projects. Moreover, in traditional feature selection and text mining approaches, the selected terms are un-organized and hard to be explained. Therefore, this study will focus on real video and mobile game project descriptions to replace conventional questionnaires. To solve these issues, we present a lexicon-based feature selection method. We attempt to define “content features” and build lexicons to determine the attributes’ values. Three feature selection methods including decision tree (DT), Least Absolute Shrinkage and Selection Operator (LASSO), and support vector machine–recursive feature elimination (SVM–RFE) will be employed to find organized candidate key successful factors. Then, support vector machines (SVM) will be used to evaluate the performances of candidate feature subsets. Finally, this study has identified the key successful factors for video and mobile games, respectively. Based on the experimental results, we can give fundraisers some useful suggestions to improve the success rate of crowdfunding projects.

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“…The study's primary contribution reveals the potential downside of offering contestant-agnostic incentives. Given that incentives may widen the effort gap between late and entry entrants, a seeker, when hosting the tournament, may consider offering a dynamic reward that takes into account the heterogeneity based on entry timing (Yang et al, 2020). More generally, the study recommends that a seeker should not only be conscious of the underlying heterogeneity but also factor in the same when designing tournament features (e.g.…”

Section: Different Eyes On the Same Prizementioning

confidence: 99%

Different eyes on the same prize: implications of entry timing heterogeneity and incentives for contestant effort in innovation tournament

Deodhar

2020

ITP

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PurposeThis paper examines an apparent contrast in organizing innovation tournaments; seekers offer contestant-agnostic incentives to elicit greater effort from a heterogeneous pool of contestants. Specifically, the study tests whether and how such incentives and the underlying heterogeneity in the contestant pool, assessed in terms of contestants' entry timing, are jointly associated with contestant effort. Thus, the study contributes to the prior literature that has looked at behavioral consequences of entry timing as well as incentives in innovation tournaments.Design/methodology/approachFor hypothesis testing, the study uses a panel dataset of submission activity of over 60,000 contestants observed in nearly 200 innovation tournaments. The estimation employs multi-way fixed effects, accounting for unobserved heterogeneity across contestants, tournaments and submission week. The findings remain stable across a range of robustness checks.FindingsThe study finds that, on average, late entrant tends to exert less effort than an early entrant (H1). Results further show that the effort gap widens in tournaments that offer higher incentives. In particular, the effort gap between late and early entrants is significantly wider in tournaments that have attracted superior solutions from several contestants (H2), offer gain in status (H3, marginally significant) or offer a higher monetary reward (H4).Originality/valueThe study's findings counter conventional wisdom, which suggests that incentives have a positive effect on contestant behavior, including effort. In contrast, the study indicates that incentives may have divergent implications for contestant behavior, contingent on contestants' entry timing. As the study discusses, these findings have several implications for research and practice of managing innovation tournaments.

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Profit allocation in investment-based crowdfunding with investors of dynamic entry times

Cited by 28 publications

References 31 publications

The Effect of Herding Behaviors on Dual-Route Processing of Communications Aimed at Tourism Crowdfunding Ventures

The Effect of Herding Behaviors on Dual-Route Processing of Communications Aimed at Tourism Crowdfunding Ventures

The key successful factors of video and mobile game crowdfunding projects using a lexicon-based feature selection approach

Different eyes on the same prize: implications of entry timing heterogeneity and incentives for contestant effort in innovation tournament

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