Research on the financing dynamics of product crowdfunding: based on the perspective of emotion

Abstract

Product crowdfunding provides new financing channels for entrepreneurs. How to screen crowdfunding projects has become an important issue in this field, and the financing dynamics of projects is the starting point to study the filtering of crowdfunding projects. Based on the perspective of emotions, this paper uses text analysis technology to extract the emotions contained in the comments of crowdfunding projects, and analyzes the influence of emotions on the dynamics of project financing. The main conclusions are as follows: for financing dynamics, anticipation, trust and sadness can help to increase the number of subsequent investors, while joy and disgust have significant negative effects on the number of subsequent investors. The conclusion of this paper is useful to the protection of crowdfunding investors and the operation practice of crowdfunding platforms.

Crowd Reactions to Entrepreneurial Failure in Rewards-Based Crowdfunding: A Psychological Contract Theory Perspective

“…While emotions embedded in creators' pitches have received some attention (for a recent example, see Allison et al 2022), backers' emotional valence remains largely overlooked in the literature. Our study contributes to the nascent stream of literature investigating investor emotions in the context of crowdfunding (e.g., Fairchild et al 2017;Shafi and Mohammadi 2020;Wuillaume et al 2019;Qi et al 2020).…”

“…Arguably, the crowd's emotional behavior may have critical financial implications. For instance, Qi et al (2020) provides an interesting analysis of the impact of emotions on campaign financing. Similarly, the emotional behavior of the crowd when failing to receive rewards may have implications for the crowd's future investment intention.…”