Online feedback and crowdfunding finance in China

Shahab, Y., Riaz, Y., Ntim, C.G., Ye, Z., Zhang, Q., and Feng, R. (2020). Online feedback and crowdfunding finance in China. International Journal of Finance and Economics, Forthcoming.

41 Pages Posted: 18 Feb 2021

See all articles by Yasir Shahab

Yasir Shahab

School of Accounting, Xijing University

Yasir Riaz

University of Northampton; Lahore University of Management Sciences

Collins G. Ntim

University of Southampton Business School, UK; University of Southampton

Zhiwei Ye

University of International Business and Economics (UIBE)

Qingjing Zhang

University of Southampton - Southampton Business School

Ran Feng

Xian Jiaotong University

Date Written: June 18, 2020

Abstract

This study examines the impact of online feedback on the extent of alternative startups’ fundraising success or failure through reward-based online crowdfunding platforms. By drawing on regulatory focus theory, we theorize that online feedback relating to products or services is crucial in determining the success of entrepreneurial projects. While employing a unique dataset of 620 projects from renowned reward-based Chinese crowdfunding platform “Demohour” (a major pioneer Chinese crowdfunding platform), the findings show a significant effect of online feedback on the extent of success or failure of reward-based crowdfunding campaigns. Our findings, which are robust to different measures and methodologies imply that nascent entrepreneurs need to pay keen attention to online feedback about their innovative projects if they are to be successful in their fundraising efforts.

Keywords: Online feedback, regulatory focus theory, social influence, reward-based crowdfunding dynamics, China

JEL Classification: D14, D82, M13, L26

Suggested Citation

Shahab, Yasir and Riaz, Yasir and Ntim, Collins G. and Ye, Zhiwei and Zhang, Qingjing and Feng, Ran, Online feedback and crowdfunding finance in China (June 18, 2020). Shahab, Y., Riaz, Y., Ntim, C.G., Ye, Z., Zhang, Q., and Feng, R. (2020). Online feedback and crowdfunding finance in China. International Journal of Finance and Economics, Forthcoming., Available at SSRN: https://ssrn.com/abstract=3768142

Yasir Shahab

School of Accounting, Xijing University ( email )

Xijing Road
Chang'An District
Xi'an, Shaanxi Province, Shaanxi Province 710123
China
+8613126584641 (Phone)

Yasir Riaz

University of Northampton

Waterside Campus
University Drive
Northampton, NN1 5PH
United Kingdom

Lahore University of Management Sciences ( email )

D.H.A, Lahore Cantt
Lahore, Punjab 54792
Pakistan

HOME PAGE: http://www.lums.edu.pk

Collins G. Ntim (Contact Author)

University of Southampton Business School, UK ( email )

Southampton Business School
Highfield
Southampton, England SO17 IBJ
United Kingdom
+44 (0) 238059 4285 (Phone)
+44 (0) 238059 3844 (Fax)

HOME PAGE: http://www.southampton.ac.uk/business-school/about/staff/cgn1n11.page

University of Southampton ( email )

Southampton, SO17 1BJ
United Kingdom

Zhiwei Ye

University of International Business and Economics (UIBE) ( email )

10, Huixin Dongjie
Changyang District
Beijing, Beijing 100029
China

Qingjing Zhang

University of Southampton - Southampton Business School ( email )

SO17 1BJ
United Kingdom

Ran Feng

Xian Jiaotong University ( email )

China

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