Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/286918 
Year of Publication: 
2021
Citation: 
[Journal:] The Journal of Technology Transfer [ISSN:] 1573-7047 [Volume:] 47 [Issue:] 6 [Publisher:] Springer US [Place:] New York, NY [Year:] 2021 [Pages:] 1662-1689
Publisher: 
Springer US, New York, NY
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 or 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 behavior
Entrepreneurial finance
Social, ethical, and environmental investing
Socially responsible investing
JEL: 
G11
G24
K22
M13
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article
Document Version: 
Published Version

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