The Role of Signaling and Social Identity in Crowdfunding: Evidence from BRICS Countries
- 10.2991/assehr.k.210531.073How to use a DOI?
- Crowdfunding, Signaling, Social Identity, BRICS, Financing
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.
- © 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/).
Cite this article
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 -