Work

Social media marketing for equity crowdfunding: Which posts trigger investment decisions?

Year: 2022

Type: article

Abstract: Based on 26,883 investment decisions, we examine the influence of social media marketing on crowd participation in equity crowdfunding. We distinguish between different types of informative and persuasive posts on Facebook and Twitter. Informative posts provide investors with information about the crowdfunding campaign; persuasive posts do not, but rather aim to directly influence an investor’s decision-making process. We find that both types of posts have a positive impact on the number of investments. However, persuasive posts also increase the amount of an investment if they contain a statement about the previous investment success of the campaign and signal to the crowd that they are not investing alone.

Source: Finance research letters

DOI: 10.1016/j.frl.2022.103370

Authors: Maik Eisenbeiss, Sven A. Hartmann, Lars Hornuf

Institutions: University of Bremen, Institute for Labour Law and Industrial Relations in the European Union, Universität Trier

Language: English

Topic: FinTech, Crowdfunding, Digital Finance

Subfield: Management Information Systems

Field: Business, Management and Accounting

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $2,270

Funder: Deutsche Forschungsgemeinschaft