Attention Across Borders: Investor Attention as a Driver of Investment Choices in Cross-Border Equity Crowdfunding

57 Pages Posted: 1 Dec 2019

See all articles by Markku V. J. Maula

Markku V. J. Maula

Aalto University, Department of Industrial Engineering and Management

Anna Lukkarinen

Aalto University, Department of Industrial Engineering and Management

Date Written: November 15, 2019

Abstract

Equity crowdfunding is an increasingly international form of digital platform-based entrepreneurial finance. With an unprecedented number of available international investment opportunities, it becomes relevant to ask what leads cross-border investors to invest in certain campaigns and not others. Building on attention literature, we theorize how investor attention drives cross-border investors’ investment choices. We test our hypotheses using a unique dataset of cross-border equity crowdfunding investments. We find that investor attention, as proxied by campaign visibility in investor countries and entrepreneur-investor co-nationality, has strong positive effects on cross-border investment tie formation, whereas national distances lose their importance in this digital setting.

Keywords: cross-border investments, equity crowdfunding, digital platforms, attention, co-nationality, national distances

JEL Classification: M13, G24, F20

Suggested Citation

Maula, Markku V. J. and Lukkarinen, Anna, Attention Across Borders: Investor Attention as a Driver of Investment Choices in Cross-Border Equity Crowdfunding (November 15, 2019). Available at SSRN: https://ssrn.com/abstract=3487467

Markku V. J. Maula (Contact Author)

Aalto University, Department of Industrial Engineering and Management ( email )

PO Box 15500
FI-00076 AALTO
Espoo
Finland

HOME PAGE: http://users.aalto.fi/mmaula/

Anna Lukkarinen

Aalto University, Department of Industrial Engineering and Management ( email )

PO Box 15500
00076 Aalto
Espoo
Finland

HOME PAGE: http://https://people.aalto.fi/anna.lukkarinen

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