Herding Behavior Study On China Crowdfunding Platform

With the development of science and technology,and the Internet Financial, as a new financing model,crowdfunding has gained much attention. This funding way between capital demanders and capital providers raised such a use of network investment and financing way to provide direct bridge to promote the circulation of capital, so as to help a lot of start-up funding and make projects successful. According to the Massolution research report pointed out in 2013, this funding way raised the global total funds raised $5,100,000,000, of which 90% concentrated in Europe and the United States market. The World Bank report also forecast this total amount will exceed $96,000,000,000 on 2025, of which Asia accounted for significant growth. In recent years, the development of domestic crowdfunding website is rapid, such as zhongchou. cn,demohour. com,dreamore. com,musikid. com,5 SING,tmeng.cn,hi.taobao. com.Among these sites, the most important is the platform established on2012 December contained entertainment,science and technology, culture, sports, finance, etc.-zhongchou.cn.As the typical of crowdfunding platform, zhongchou.cn provides financing for many investors and financiers, on this platform, the funding needs describe their own project, get the attention of the investors and investment. If the final project achieves the expected total funds, the project will be successful, investors will pay off; if the project eventually failed to raise funds, the investors’investment returned. In such a mode, the popular items will eventually get the money, the unpopular project will fail. In this paper, combined with the practical background, taking into account the research objective, representative and convenience, in the choice of the starting point, chose zhongchou.cn as the research object.In the full reading about the herding behavior in financial market, the traditional herding behavior, herding behavior of Internet market, Internet financial market herding behavior and crowdfunding, this paper put forward the hypothesis and research model. Then use the program to catch real transaction data, received a total of 2,862 data, covering 88 projects, through the empirical analysis of these data to verify the hypotheses, finally study the analysis of the data, the six research hypothesis testing, we can draw the conclusion as follows:1.In the crowdfunding behavior, when the number of supporters a project is less, with the increase in the number of people, a supporter of the project will gradually increase; but at a certain stage, along with the increase of the number of supporters, a number of supporters will show a decline in the trend. In the data that is presented as an inverted "U" relationship.2. In the crowdfunding behavior,the number of comments of a project affects follow investors’ investment behavior is obvious. That is to say, the more comments a project gets, the more intense herding behavior of investors under the project a period following the pre-investment behavior; the less comments a project gets, the weaker herding behavior of investors under the project a period following the pre-investment behavior.3. On zhongchou.cn, the "love" number of projects affects follow investors’ investment behavior is obvious.The more "love" number of projects get, herding project next period following the pre-investment behavior is more intense; The less "love" number of projects get, herding project next period following the pre-investment behavior is more weak.4.The study found that the number of sites of the project is shared on the social networking site for the regulation of herding project next investors follow previous investors’ investment behavior is not obvious.5.On zhongchou.cn, the remaining days of project financing deadline for regulation of herding project next investors follow previous investors investment behavior significantly. The remaining days of project financing deadline is shorter, herding behavior of investors under the project a period following the pre-investment behavior is more intense; the remaining days of project financing deadline is longer, herding behavior of investors under a project following the pre investment behavior is more weak. This shows that the time of oppression will make more people choose to invest on the project.6. In the crowdfunding behavior,regulation of herding project categories for the project investors with a previous investors investment behavior is not significant.