The role of signals and third-party endorsements in reward-based crowdfunding: does the funding goal matter?
by Soumodip Sarkar; José Jacinto Bilau; Jorge Pires
International Journal of Entrepreneurial Venturing (IJEV), Vol. 15, No. 3, 2023

Abstract: This study uses the twin lenses of signalling theory and certification theory, to explore the role of signals and third-party endorsement in reward-based crowdfunding success. We follow 339 rewards-based crowdfunding campaigns to capture campaign characteristics and funding outcomes. The study provides an insight into on the role of signals and third-party endorsement, extending extant knowledge to reveal that both signals' variables and third-party endorsement variables influence a project success. We also find a differential role of these variables according to the funding goal. Overall, our paper's contribution in the context of reward-based crowdfunding assumes great relevance given the prevalence of information asymmetries in crowdfunding compared to other more traditional financing mechanisms. Project founders can make use of the results to improve the information related to their projects to increase the chance to have a project successfully funded. Results are also relevant for crowdfunding platforms itself that might automatically assess the chance of successful funding of projects.

Online publication date: Thu, 22-Jun-2023

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

 
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Entrepreneurial Venturing (IJEV):
Login with your Inderscience username and password:

Username:        Password:          Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com