The Dynamics of Investor Sentiment Impacts in Equity Crowdfunding: Unveiling the When

Thang Nguyen*, Jiaqi Guo, Daniel Dao, Thanh Nguyen, Bao To

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

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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.
Original languageEnglish
JournalBritish Journal of Management
Early online date16 Jul 2024
DOIs
Publication statusE-pub ahead of print - 16 Jul 2024

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