EFFECTS OF EARLY PARTICIPATION IN LOTTERIES ON SUBSEQUENT INVESTMENT BEHAVIORS IN CROWDFUNDING: AN ENGAGEMENT THEORY

Shuang Ma; Daniel P. Hampson; Dahui Li; Yonggui Wang; Xia Li

EFFECTS OF EARLY PARTICIPATION IN LOTTERIES ON SUBSEQUENT INVESTMENT BEHAVIORS IN CROWDFUNDING: AN ENGAGEMENT THEORY

Shuang Ma
, Daniel P. Hampson
, Dahui Li
, Yonggui Wang^*
, Xia Li

^*Corresponding author for this work

Department of Intelligent Operations and Marketing

University of International Business and Economics
University of Colorado Colorado Springs
Zhejiang Gongshang University
Capital University of Economics and Business

Research output: Contribution to journal › Article › peer-review

1 Citation (Scopus)

Abstract

Prior studies of the effects of lotteries in crowdfunding have reported mixed findings. We contribute to the debate by asking how early lottery participation influences continued investment and peer investment in a subsequent stage, seeking to identify tactics that project creators can apply to optimally leverage the role of early lottery participation. Drawing on engagement theory, we develop and test a model using data from 424 projects collected from a Chinese crowdfunding platform. Results demonstrate that early lottery participation has a significant effect on continued investment (i.e., the investment of early lottery participants), but a nonsignificant effect on peer investment (i.e., the investment of non-early participants). Dynamic interaction between project creators and backers enhances the effects of early lottery participation on continued investment and peer investment.

Original language	English
Pages (from-to)	338-357
Number of pages	20
Journal	Journal of Electronic Commerce Research
Volume	24
Issue number	4
Publication status	Published - 1 Nov 2023

Keywords

Crowdfunding
Early lottery participation
Engagement theory
Information asymmetry
Peer investment

Cite this

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title = "EFFECTS OF EARLY PARTICIPATION IN LOTTERIES ON SUBSEQUENT INVESTMENT BEHAVIORS IN CROWDFUNDING: AN ENGAGEMENT THEORY",

abstract = "Prior studies of the effects of lotteries in crowdfunding have reported mixed findings. We contribute to the debate by asking how early lottery participation influences continued investment and peer investment in a subsequent stage, seeking to identify tactics that project creators can apply to optimally leverage the role of early lottery participation. Drawing on engagement theory, we develop and test a model using data from 424 projects collected from a Chinese crowdfunding platform. Results demonstrate that early lottery participation has a significant effect on continued investment (i.e., the investment of early lottery participants), but a nonsignificant effect on peer investment (i.e., the investment of non-early participants). Dynamic interaction between project creators and backers enhances the effects of early lottery participation on continued investment and peer investment.",

keywords = "Crowdfunding, Early lottery participation, Engagement theory, Information asymmetry, Peer investment",

author = "Shuang Ma and Hampson, \{Daniel P.\} and Dahui Li and Yonggui Wang and Xia Li",

year = "2023",

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T1 - EFFECTS OF EARLY PARTICIPATION IN LOTTERIES ON SUBSEQUENT INVESTMENT BEHAVIORS IN CROWDFUNDING

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AU - Ma, Shuang

AU - Hampson, Daniel P.

AU - Li, Dahui

AU - Wang, Yonggui

AU - Li, Xia

PY - 2023/11/1

Y1 - 2023/11/1

N2 - Prior studies of the effects of lotteries in crowdfunding have reported mixed findings. We contribute to the debate by asking how early lottery participation influences continued investment and peer investment in a subsequent stage, seeking to identify tactics that project creators can apply to optimally leverage the role of early lottery participation. Drawing on engagement theory, we develop and test a model using data from 424 projects collected from a Chinese crowdfunding platform. Results demonstrate that early lottery participation has a significant effect on continued investment (i.e., the investment of early lottery participants), but a nonsignificant effect on peer investment (i.e., the investment of non-early participants). Dynamic interaction between project creators and backers enhances the effects of early lottery participation on continued investment and peer investment.

AB - Prior studies of the effects of lotteries in crowdfunding have reported mixed findings. We contribute to the debate by asking how early lottery participation influences continued investment and peer investment in a subsequent stage, seeking to identify tactics that project creators can apply to optimally leverage the role of early lottery participation. Drawing on engagement theory, we develop and test a model using data from 424 projects collected from a Chinese crowdfunding platform. Results demonstrate that early lottery participation has a significant effect on continued investment (i.e., the investment of early lottery participants), but a nonsignificant effect on peer investment (i.e., the investment of non-early participants). Dynamic interaction between project creators and backers enhances the effects of early lottery participation on continued investment and peer investment.

KW - Crowdfunding

KW - Early lottery participation

KW - Engagement theory

KW - Information asymmetry

KW - Peer investment

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AN - SCOPUS:85182685314

SN - 1938-9027

VL - 24

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JO - Journal of Electronic Commerce Research

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ER -

EFFECTS OF EARLY PARTICIPATION IN LOTTERIES ON SUBSEQUENT INVESTMENT BEHAVIORS IN CROWDFUNDING: AN ENGAGEMENT THEORY

Abstract

Keywords

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