The dynamics of investor sentiment impacts in equity crowdfunding: Unveiling the when

Nguyen, Thang; Guo, Jiaqi; Dao, Daniel; Nguyen, Frank; To, Bao

Abstract

Expanding upon the known impact of investor sentiment on crowdfunding contributions, we delve deeper to pinpoint specific conditions under which sentiment influences investor choices. Grounded in psychological theory, we assert that sentiment's influence thrives at the peak of investor attention, primarily on a campaign's first day and among projects with greater uncertainty. Our empirical study, based on 447 campaigns with 17,244 daily observations from the United Kingdom's Crowdcube platform, substantiates our claim. Our research enhances the comprehension of equity crowdfunding investors and provides practical insights for its proponents.

• Journal Article Type: Article
• Acceptance Date: Jun 24, 2024
• Online Publication Date: Jul 16, 2024
• Publication Date: Jan 5, 2025
• Deposit Date: Feb 19, 2025
• Publicly Available Date: Feb 25, 2025
• Journal: British Journal of Management
• Print ISSN: 1045-3172
• Electronic ISSN: 1467-8551
• Publisher: Wiley
• Peer Reviewed: Peer Reviewed
• Volume: 36
• Issue: 1
• Pages: 423-442
• DOI: https://doi.org/10.1111/1467-8551.12854
• Public URL: https://uwe-repository.worktribe.com/output/13778122
• Additional Information: Received: 2023-09-29; Accepted: 2024-06-24; Published: 2024-07-16