TITLE:
Antecedents of Success Rate of Award-Based Crowdfunding: The Case of the “Kickstarter”
AUTHORS:
Chang Liu, Jinshan Liu
KEYWORDS:
Component, Award-Based Crowdfunding, Success Rate of Financing, Theoretical Elaboration, Likelihood Model
JOURNAL NAME:
Modern Economy,
Vol.7 No.3,
March
22,
2016
ABSTRACT: Based on the previous studies,
this paper applied the theoretical elaboration likelihood model to the in-depth
analysis of psychological path of the investors when they made a final investment
decision after browsing and screening relative information of award-based crowdfunding
projects. Then this paper studied the influence of various factors on the success
rate of the crowdfunding projects. Logistics method was chosen for empirical verification
based on selected detailed data on 300 Chinese items on Kickstarter platform; the
results showed that the central clue: the ambiguous degree of the description, the
key word of risk, the update, and the peripheral clue: initiator’s social capital,
the duration of the project were positively related to the success rate of crowdfunding.
It was proved that investors would make rational investment decisions when facing
high uncertainty characteristics of the target projects.