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

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; Stanford University, Department of Management Science and Engineering

Date Written: March 5, 2022

Abstract

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

Maula, Markku V. J. and Lukkarinen, Anna, Attention Across Borders: Investor Attention as a Driver of Cross-Border Equity Crowdfunding Investments (March 5, 2022). Forthcoming in Strategic Entrepreneurship Journal, Available at SSRN: https://ssrn.com/abstract=3487467 or http://dx.doi.org/10.2139/ssrn.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

Stanford University, Department of Management Science and Engineering ( email )

Stanford, CA 94305
United States

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