How Platform Governance Affects Entrepreneurs' Capacity to Attract Funding

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Abstract

This study focuses on how platform governance in a crowdfunding setting influences the performance of campaigns, and how this effect varies among different user groups. Specifically, we investigate whether giving entrepreneurs discretion over the choice of funding model for their crowdfunding campaign improves the performance of their campaigns, and whether it has different performance implications for male and female entrepreneurs. We find that being able to choose a funding model that reveals an entrepreneur's preference for risk taking, in contrast to one that reveals risk aversion, has a positive effect on performance. Additionally, we find that female entrepreneurs can benefit more than male entrepreneurs from being able to reveal their risk preferences. We attribute the effects to signaling arguments. However, we also find that female entrepreneurs are in general less likely to choose the riskier funding model, likely due to higher risk aversion of women.
Original languageEnglish
Title of host publicationProceedings of the Eighty-third Annual Meeting of the Academy of Management
EditorsSonia Taneja
Number of pages1
Place of PublicationBriarcliff Manor, NY
PublisherAcademy of Management
Publication date2023
Pages2621
DOIs
Publication statusPublished - 2023
EventThe Academy of Management Annual Meeting 2023: Putting the Worker Front and Center - Boston, United States
Duration: 4 Aug 20238 Aug 2023
Conference number: 83
https://aom.org/events/annual-meeting/future-annual-meetings/2023-putting-the-worker-front-and-center

Conference

ConferenceThe Academy of Management Annual Meeting 2023
Number83
Country/TerritoryUnited States
CityBoston
Period04/08/202308/08/2023
Internet address
SeriesAcademy of Management Annual Meeting Proceedings
ISSN0065-0668

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