Gender Differences in the Contribution Patterns of Equity-Crowdfunding Investors

37 Pages Posted: 30 Jun 2015 Last revised: 2 Dec 2016

See all articles by Ali Mohammadi

Ali Mohammadi

Copenhagen Business School - Department of Strategy and Innovation; KTH Royal Institute of Technology

Kourosh Shafi

University of Florida - Center for Entrepreneurship and Innovation

Date Written: September 2, 2016

Abstract

This paper investigates gender-differences in the behavior of investors in firms seeking equity financing. Using data from Swedish equity crowdfunding platform – Fundedbyme, we find that only 20% of investors are female. Female investors are less likely to invest in the equity of firms that are younger, high-tech, and have a higher percentage of equity offerings. This pattern seems consistent with a greater risk-aversion in female versus male investors. Furthermore, female investors are more likely to invest in projects in which the proportion of male investors is higher.

Keywords: Crowdfunding; Equity; Gender; Herding; Observational learning; Risk-aversion

JEL Classification: G02, G11, G20, M13

Suggested Citation

Mohammadi, Ali and Shafi, Kourosh, Gender Differences in the Contribution Patterns of Equity-Crowdfunding Investors (September 2, 2016). Small Business Economics, Forthcoming. Available at SSRN: https://ssrn.com/abstract=2624485 or http://dx.doi.org/10.2139/ssrn.2624485

Ali Mohammadi (Contact Author)

Copenhagen Business School - Department of Strategy and Innovation ( email )

Kilen
Frederiksberg, 2000
Denmark

KTH Royal Institute of Technology ( email )

Stockholm
Sweden

Kourosh Shafi

University of Florida - Center for Entrepreneurship and Innovation ( email )

United States

HOME PAGE: http://www.kshafi.com

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