Gender Differences in the Contribution Patterns of Equity-Crowdfunding Investors
37 Pages Posted: 30 Jun 2015 Last revised: 2 Dec 2016
Date Written: September 2, 2016
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
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