The Role of Signaling and Social Identity in Crowdfunding: Evidence from BRICS Countries

DOI

10.2991/assehr.k.210531.073How to use a DOI?

Keywords

Crowdfunding, Signaling, Social Identity, BRICS, Financing

Abstract

This study examines the effect of signaling and the social identity inherent in the project owner in determining the success factor of a crowdfunding project. The study is tested using 580 data from projects in Brazil, Russia, India, China, and South Africa (BRICS countries) during the period from 2012 to the beginning of 2019. Using ordinary least square (OLS) as analysis technique, it is found that the signaling effect that is explained through comments and updates has a positive and significant influence in supporting funding success. Signaling is an ultimate way to eliminate asymmetric information in online transactions including in crowdfunding. Social identity effects on crowdfunding also show positive and significant results in influencing the success of funding explained through the number of project publications on Facebook. Project publication on Facebook is one of the examples of electronic word-of-mouth that has been proven to affect crowdfunding campaigns. On the other hand, it is not proven that the social identity effect explained by the number of friends on Facebook has a significant influence on the success of crowdfunding in the BRICS countries. The number of Facebook friends is long associated with identity sentiment that results in higher funding during the project campaign. However, this research shows no evidence due to some limitations surrounding the data.

Copyright

© 2021, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Niluh Putu Damayanti
AU  - Liyu Adhi Kasari Sulung
PY  - 2021
DA  - 2021/05/31
TI  - The Role of Signaling and Social Identity in Crowdfunding: Evidence from BRICS Countries
BT  - Proceedings of the Asia-Pacific Research in Social Sciences and Humanities Universitas Indonesia Conference (APRISH 2019)
PB  - Atlantis Press
SP  - 578
EP  - 590
SN  - 2352-5398
UR  - https://doi.org/10.2991/assehr.k.210531.073
DO  - 10.2991/assehr.k.210531.073
ID  - Damayanti2021
ER  -