Social Media Marketing for Equity Crowdfunding: Which Posts Trigger Investment Decisions?

16 Pages Posted: 18 Apr 2022

See all articles by Maik Eisenbeiss

Maik Eisenbeiss

University of Bremen - Faculty of Business Studies and Economics

Sven A. Hartmann

Institute for Labour Law and Industrial Relations in the European Union (IAAEU)

Lars Hornuf

University of Bremen - Faculty of Business Studies and Economics; Max Planck Institute for Innovation and Competition; CESifo (Center for Economic Studies and Ifo Institute)

Date Written: April 6, 2022

Abstract

Based on 26,883 investment decisions, we examine the inŕuence of social media marketing on crowd participation in equity crowdfunding. We distinguish between different types of informative and persuasive posts on Facebook and Twitter. Informative posts provide investors with information about the crowdfunding campaign; persuasive posts do not, but rather aim to directly inŕuence an investor’s decision-making process. We find that both types of posts have a positive impact on the number of investments. Persuasive posts increase the amount of an investment if they contain a statement about the previous investment success of the campaign and signal the crowd that they are not investing alone.

Keywords: Equity crowdfunding, Entrepreneurial finance, Social media, Investor communication

JEL Classification: G11, G20, M13

Suggested Citation

Eisenbeiss, Maik and Hartmann, Sven A. and Hornuf, Lars, Social Media Marketing for Equity Crowdfunding: Which Posts Trigger Investment Decisions? (April 6, 2022). Available at SSRN: https://ssrn.com/abstract=4076954 or http://dx.doi.org/10.2139/ssrn.4076954

Maik Eisenbeiss

University of Bremen - Faculty of Business Studies and Economics ( email )

Bremen, D-28359
Germany

Sven A. Hartmann

Institute for Labour Law and Industrial Relations in the European Union (IAAEU) ( email )

Behringstr. 21
Campus II, Building H, 7. Floor
Trier, DE 54296
Germany

Lars Hornuf (Contact Author)

University of Bremen - Faculty of Business Studies and Economics ( email )

Bremen, D-28359
Germany
+49 89 20348619 (Phone)

HOME PAGE: http://www.hornuf.com

Max Planck Institute for Innovation and Competition ( email )

Marstallplatz 1
Munich, Bayern 80539
Germany

CESifo (Center for Economic Studies and Ifo Institute) ( email )

Poschinger Str. 5
Munich, DE-81679
Germany

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