Title: Geographic dimension, information asymmetry, and the success of crowdfunding campaigns

Authors: Nessrine Omrani; Adnane Maalaoui; Charles Perez; Gaël Bertrand; Rony Germon

Addresses: Disruptive Digital Data Chair, PSB Paris School of Business, 59 Rue Nationale, 75013 Paris, France ' IPAG Business School, 184 Boulevard Saint-Germain, 75006 Paris, France ' Disruptive Digital Data Chair, PSB Paris School of Business, 59 Rue Nationale, 75013 Paris, France ' ESSCA, 350 Avenue du Club Hippique, 13090 Aix-en-Provence, France ' Research Center (DVRC), Leonard de Vinci Pole Universitaire, 92916 La Défense Paris Cedex, France

Abstract: In this paper, we study the relationship between geographic distance, asymmetric information and the success of crowdfunding campaigns. For this purpose, we collect data from the 'Kickstarter' crowdfunding platform from 2012 to 2013. The sample contains 9,146 projects financed by more than 300,000 funders in 165 countries. An ordinary least squares (OLS) model was used. Results show a positive and significant relationship between information asymmetry items and the success of the crowdfunding campaign. This relationship is negative between the geographic distance of the funders and the campaign's success, meaning that the farther the funder is located from the project, the less is the probability of the campaign's success. Results also show that the number of funders, the duration of the project, and the economic sector are linked to crowdfunding campaign success.

Keywords: crowdfunding; geographic distance; ordinary least squares; OLS; asymmetric information.

DOI: 10.1504/IJESB.2022.120551

International Journal of Entrepreneurship and Small Business, 2022 Vol.45 No.1, pp.16 - 34

Received: 09 Apr 2019
Accepted: 09 Apr 2019

Published online: 11 Jan 2022 *

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