Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/219157 
Year of Publication: 
2020
Series/Report no.: 
CESifo Working Paper No. 8339
Publisher: 
Center for Economic Studies and Ifo Institute (CESifo), Munich
Abstract: 
In this article, we examine how investor motives affect investment behavior in equity crowdfunding. In particular, we compare the investment behavior of sustainability-oriented with ordinary crowd investors on six leading equity crowdfunding platforms in Austria and Germany and investigate whether they suffer from a default shock that was recently identified by Dorfleitner et al. (2019). In general, we find evidence of a default shock in equity crowdfunding that occurs immediately after the event and if investors experience more than two insolvencies. Moreover, we find that sustainability-oriented investors pledge larger amounts of money and invest in more campaigns than ordinary crowd investors. The results also suggest that sustainability-oriented crowd investors care about non-financial returns, as they react more sensitively after experiencing a default in their equity crowdfunding portfolios, which indicates that they suffer beyond the pure financial loss. These findings contribute to recent literature on equity crowdfunding, socially responsible investing, and how individual investment motives and personal experiences affect investment decisions.
Subjects: 
equity crowdfunding
individual investor behaviour
entrepreneurial finance
social
ethical
and environmental investing
socially responsible investing
JEL: 
G11
G24
K22
M13
Document Type: 
Working Paper
Appears in Collections:

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.