The Influence Of Geographical Distance And Investment Experience On Investment Decision

As the intermediary of obtaining information and services,equity crowdfunding fill the marketing gap of small and medium-sized micro-credit service institutions to a certain extent.Its existence can ease the information asymmetry between the borrowers and lenders,and facilitate the smooth completion of investment and financing transactions.How from the development of the past few years,many equity crowdfunding platforms have gradually withdrawn from the financial sector due to the market,legal policy and its own other reasons.Many small platforms' operation is difficult and hardly finfish an investment agreement.Therefore,it is necessary to study the factors influencing the investment decision-making in the market of the equity,which can effectively improve the matching ability of the platform to the investors and the start-up companies and ensuring the smooth completion of the online investment and financing transactions.Based on the information asymmetry and transaction cost theory,this paper uses the data of start-up enterprises and investors of AngelList platform,studies how investors can match themselves with start-ups and then make the appropriate investment decisions.The research of this paper is mainly include of two aspects:Firstly,studying the effect of physical distance,investment experience and the professional match between investors and start-up enterprises on the investment decisions.Secondly,studying the moderator role of the professional match between the effect of physical distance and investment experience on investment decisions.Finally,the SPSS 18.0 software is used to test the sample data.Logistic regression analysis and the moderator effects analysis are used to verify hypothesizes.The results show that,(1)the physical distance has a significant negative effect on the investment decision,that is to say,investors located closer away from new firms tend to invest easier.(2)Investment experience has a significant positive impact on investment decision-making.(3)The investors and start-up business professional match has a significant positive impact on investment decisions,that is,investors are more likely to choose the program that their own profession closer to the start-up enterprises.(4)When investors and start-up business professional match is low,the negative impact of physical distance on investment decision-making is stronger,that is,when the professional match is high,the local bias of investor's is weakened.(4)Compared with the low professional match,when investors and start-up enterprises professional match is high,the investor's investment experience has more significant effect on investment decisions.In addition,we classify the project types and study the impact of different project types on the model.We find that the influence of physical distance on investment distance is not significant in e-commerce,finance and public utilities.The software and hardware project can weak the effect of distance on investment decisions by improving the professional matching with investors.The effect of investor experience on investment decisions in financial projects is not significant,mainly because the financial sector involves strong professionalism,has greater uncertainty and risk,so even rich experienced investors is hardly invest such projects.And in the process of comparing different types of projects,we found that the effect of professional matching degree on investment decisions all have a significant positive impact,indicating that investors are easier to choose their familiar areas.From the results of this paper,we can see that equity crowdfunding projects have strong regional,investors are more inclined to choose the close geographical distance to invest.For the higher degree of professional matching projects,investors"local preference" are weakened.According to the research of this paper,it has important value for platform on how to match the investors and the start-up enterprises.All in all,this paper explores the matching relationship between investors and the crowdfunding projects,which can improve the success rate of financing and the information service capability of equity platform.