Attention Across Borders: Investor Attention as a Driver of Cross-Border Equity Crowdfunding Investments
Forthcoming in Strategic Entrepreneurship Journal
55 Pages Posted: 1 Dec 2019 Last revised: 7 Mar 2022
Date Written: March 5, 2022
Digital equity crowdfunding platforms have brought an unprecedented number of international investment opportunities to investors’ reach. Although most equity crowdfunding investments are still made domestically, cross-border investments often have a decisive role in a campaign’s success. We therefore ask what drives cross-border investments and theorize how international investors’ attention directs their investment choices. We leverage unique data and several complementary approaches to examine this question. Our contribution to the equity crowdfunding literature is twofold: (1) we theorize and empirically show how international investor attention affects cross-border equity crowdfunding investments, and (2) we conduct the first empirical study of the drivers of cross-border investments in equity crowdfunding. These findings also have implications for new venture internationalization research and the broader literature on investor attention.
Keywords: cross-border investments; equity crowdfunding; investor attention; digital platforms
JEL Classification: M13, G24, F20
Suggested Citation: Suggested Citation