Herding dynamics and multidimensional uncertainty in equity crowdfunding: The impacts of information sources

Research output: Contribution to journalArticlepeer-review

27 Downloads (Pure)

Abstract

This study investigates the temporal dynamics of herding behavior in equity crowdfunding, and especially when herding momentum is likely to occur during a funding campaign under the influence of different information disclosures. Our results are consistent with the multidimensional uncertainty theory in which herding does not occur in the first stage of funding campaigns but arises in the later stages. We further show that information from investors’ discussions may be noisier than information disclosure from project founders, and thus is more likely to bring on uncertainty and accentuate herding. Our findings highlight the importance of information resource management, in which different information sources may require different information disclosure policies.
Original languageEnglish
Article number103889
Number of pages12
JournalInformation & Management
Volume61
Issue number1
Early online date13 Nov 2023
DOIs
Publication statusPublished - Jan 2024

Bibliographical note

This is an open access article distributed under the terms of the Creative Commons CC-BY license, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Keywords

  • Information sources
  • Equity crowdfunding
  • Herding dynamics
  • Multidimensional uncertainty

ASJC Scopus subject areas

  • Finance

Fingerprint

Dive into the research topics of 'Herding dynamics and multidimensional uncertainty in equity crowdfunding: The impacts of information sources'. Together they form a unique fingerprint.

Cite this