6533b7d0fe1ef96bd125ad69
RESEARCH PRODUCT
Determinants of Individual Investment Decisions in Investment-Based Crowdfunding
Fabrice HervéElodie ManthéArmin SchwienbacherAurelie Sannajustsubject
Investment decisionFinancial economicsInvestment strategyReal estateInvestor profileAccountingSAFERReturn on investment0502 economics and businessEquity CrowdfundingEquity crowdfunding[ SHS.GESTION ] Humanities and Social Sciences/Business administrationFinance050208 financePublic economicsbusiness.industry05 social sciencesEquity (finance)050201 accountingEntrepreneurial financeStartup financeEntrepreneurial financeSeed moneyInvestment decisionsBusiness Management and Accounting (miscellaneous)[SHS.GESTION]Humanities and Social Sciences/Business administrationbusiness[SHS.GESTION] Humanities and Social Sciences/Business administrationCrowdfundingFinance050203 business & managementOverconfidence effectdescription
We investigate determinants of investment decisions in investment-based (equity and real estate) crowdfunding, using a novel investment-, investor- and campaign-level database. We find that this market is a man's world, with nearly 93% of investments made by men. Consistent with behavioral and finance theories, we find that women invest less in the riskiest investments but more in safer ones. Further analyses show that these findings are better explained by differences in risk aversion than differences in overconfidence between men and women. Investors located in an area considered more "sociable" (socially friendly) also invest more, but only if the investor is a woman. Overall, the findings contribute to our understanding of how investment-based crowdfunding can be a viable source of entrepreneurial finance and how entrepreneurs' campaign decisions affect investor participation.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2017-06-28 |