Uncertainty and information asymmetries in crowdfunding can be reduced via the quality signals project proponents send to potential supporters. Drawing on signaling theory, this study analyzes how costly signals—venture’s statements about past achievements and results—and costless signals—venture’s statements about future plans and goals—influence crowdfunding performance. The results of a multimethod study of 597 UK equity crowdfunding campaigns suggest that only costly signals increase the amount raised through crowdfunding and that costless signals generally have a negative effect. However, for companies introducing radical innovations use of costless signals is not punished by the crowd.

Di Pietro, F., Grilli, L., Masciarelli, F. (2020). Talking About A Revolution? Costly and Costless Signals and The Role of Innovativeness in Equity Crowdfunding. JOURNAL OF SMALL BUSINESS MANAGEMENT, 1-32 [10.1080/00472778.2020.1816435].

Talking About A Revolution? Costly and Costless Signals and The Role of Innovativeness in Equity Crowdfunding

Di Pietro, F
;
2020

Abstract

Uncertainty and information asymmetries in crowdfunding can be reduced via the quality signals project proponents send to potential supporters. Drawing on signaling theory, this study analyzes how costly signals—venture’s statements about past achievements and results—and costless signals—venture’s statements about future plans and goals—influence crowdfunding performance. The results of a multimethod study of 597 UK equity crowdfunding campaigns suggest that only costly signals increase the amount raised through crowdfunding and that costless signals generally have a negative effect. However, for companies introducing radical innovations use of costless signals is not punished by the crowd.
Articolo in rivista - Articolo scientifico
costly and costless signals; Equity crowdfunding; innovativeness;
Italian
1
32
32
Di Pietro, F., Grilli, L., Masciarelli, F. (2020). Talking About A Revolution? Costly and Costless Signals and The Role of Innovativeness in Equity Crowdfunding. JOURNAL OF SMALL BUSINESS MANAGEMENT, 1-32 [10.1080/00472778.2020.1816435].
Di Pietro, F; Grilli, L; Masciarelli, F
File in questo prodotto:
File Dimensione Formato  
Talking about a revolution Costly and costless signals and the role of innovativeness in equity crowdfunding.pdf

Solo gestori archivio

Dimensione 3.14 MB
Formato Adobe PDF
3.14 MB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/355447
Citazioni
  • Scopus 12
  • ???jsp.display-item.citation.isi??? ND
Social impact