نمونه متن انگلیسی مقاله
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.
‘‘Now is the time! Our crowdfunding is still open for your investment!’’ Post on Twitter during the Fraisr Campaign on Seedmatch
Signaling theory suggests that if information is asymmetrically distributed between entrepreneurs and investors, the entrepreneur can deliberately send effective signals to investors to ensure them that she is of high quality. To be effective, these signals must be observable and costly, because otherwise they could easily be faked or imitated by low-quality competitors. In equity crowdfunding, in which a large group of investors supports a startup over the Internet, information asymmetries are particularly high, given the rarity of on-site screening and due diligence (Hornuf et al., 2022). Thus, entrepreneurs often send effective signals via their project page on the equity crowdfunding platform, which acts as a gatekeeper and creates a trustworthy signaling environment (Block et al., 2018). However, the gatekeeper function largely falls away when startups use social media platforms such as Facebook or Twitter to promote their crowdfunding campaigns.
Assuming that potential investors need credible and diagnostic information before investing in crowdfunding campaigns, the use of social media marketing seems less than promising at first glance. However, startups also target different types of investors; for example, less sophisticated investors who may primarily use intuition in making their investment decisions (Agarwal and Ambrose, 2018; Hornuf et al., 2022; Snow and Rasso, 2017). As the Twitter post by Fraisr above suggest, social media posts promoting crowdfunding campaigns do not always entail effective signals in the spirit of Spence (1973). Recent research has shown that even non-informative social media content can—under certain circumstances—have a positive influence on investment decisions (Bertrand et al., 2010; Madsen and Niessner, 2019; Tsai and Honka, 2021). Equity crowdfunding provides an ideal environment to study the impact of social media content on investment decisions as investors are targeted through social media. We investigate which content startups post on social media platforms, and whether and how their posts impact on crowd participation during an equity crowdfunding campaign.
This article studies the impacts of social media posts on investment decisions in equity crowdfunding. Based on hand-collected investment data from three large German equity crowdfunding platforms, we draw three main conclusions: First, effective signals via informative posts are relatively rare, but increase the number of investments in a crowdfunding campaign. Particularly effective informational posts are those that provide either information about campaign development or external certifications. Second, persuasive posts are more common, although they are only effective if they also directly promote the crowdfunding campaign through investment advertising. Other manifestations such as product advertising or follower communication remain ineffective. Third, investment advertising works particularly well in social media marketing if it includes a statement about the campaign’s previous investment success, signaling to the crowd that they are not investing alone. In these ways, startups can effectively promote the number of investments and investment amounts through social media.