Early Winner Takes All: Exploring the Impact of Initial Herd on Overfunding in Crowdfunding Context

Yijing Li, Albert Fei Liu, Wenjie Fan, Eric T. K. Lim, Yong Liu

Publikation: Bidrag til bog/antologi/rapportKonferencebidrag i proceedingsForskningpeer review

Abstrakt

Crowdfunding endows entrepreneurs with a means of kickstarting their businesses. The amount of investment that can be elicited through crowdfunding campaigns often surpasses fundraisers’ expectation, leading to market inefficiencies. Yet, this phenomenon of overfunding has garnered relatively little attention in past studies. Subscribing to signaling theory, we strive to shed light on the causes of overfunding by positing crowdfunding platforms as fertile breeding grounds for herding behavior. Specifically, we attempt to capture the dynamic nature of herding by decomposing herds on crowdfunding platforms into their constituent dimensions of maturity, intensity, and persistency. We further endeavor to explore how these constituent dimensions shape overfunding. This study advances a model to testify to the instrumental role of initial herds in amplifying overfunding on the crowdfunding platforms, which in turn could offer insights into remedying the problem of overfunding.
OriginalsprogEngelsk
TitelPACIS 2018 Proceedings
RedaktørerMotonari Tanabu, Dai Senoo
Antal sider8
UdgivelsesstedAtlanta, GA
ForlagAssociation for Information Systems. AIS Electronic Library (AISeL)
Publikationsdato2018
Artikelnummer18
StatusUdgivet - 2018
BegivenhedThe 22nd Pacific Asia Conference on Information Systems. PACIS 2018 - Yokohama Royal Park Hotel, Yokohama, Japan
Varighed: 26 jun. 201830 jun. 2018
Konferencens nummer: 22
http://pacis2018.org/

Konference

KonferenceThe 22nd Pacific Asia Conference on Information Systems. PACIS 2018
Nummer22
LokationYokohama Royal Park Hotel
LandJapan
ByYokohama
Periode26/06/201830/06/2018
SponsorAssociation for Information Systems
Internetadresse

Emneord

  • Crowdfunding
  • Herding behavior
  • Overfunding

Citationsformater