Regional social capital and moral hazard in crowdfunding
| Item Type | Journal paper |
| Abstract | We contribute to institutional and social capital theory by developing a theoretical framework that suggests that informal and formal institutions are important in mitigating moral hazard in reward-based crowdfunding. We analyze a large sample of Kickstarter campaigns to test these predictions. We find a strong positive relationship between entrepreneurs' home-county social capital and their crowdfunding performance. A rule change that strengthens entrepreneurs' obligation to provide backers with the promised rewards is associated with a reduction in the effect of social capital, suggesting that formal institutions can substitute for informal ones and provides causal evidence of the effect of social capital. |
| Authors | Lin, Tse-Chun & Pursiainen, Vesa |
| Journal or Publication Title | Journal of Business Venturing |
| Language | English |
| Subjects | business studies economics behavioral science finance |
| Refereed | Yes |
| Date | July 2022 |
| Volume | 37 |
| Number | 4 |
| Publisher DOI | https://doi.org/10.1016/j.jbusvent.2022.106224 |
| Official URL | https://www.sciencedirect.com/science/article/pii/... |
| Depositing User | Prof. PhD Vesa Pursiainen |
| Date Deposited | 05 May 2022 12:50 |
| Last Modified | 21 Nov 2022 14:19 |
| URI: | https://www.alexandria.unisg.ch/publications/266179 |
DownloadFull text not available from this repository.CitationLin, Tse-Chun & Pursiainen, Vesa (2022) Regional social capital and moral hazard in crowdfunding. Journal of Business Venturing, 37 (4). Statisticshttps://www.alexandria.unisg.ch/id/eprint/266179
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