The Influence Of Description On Financing Performance Of Reward-based Crowdfunding

Internet has brought great changes to social and economic life.In traditional time,self-financing and angel investment are the major methods for project financing.In the Internet era,crowdfunding has become the new financing mode for many innovative projects.This model greatly promotes the commercialization of innovative projects and becomes an important booster of "mass entrepreneurship and innovation".Without expensive intermediary institutions,the transaction cost of crowdfunding cost is very low compared with traditional financial mode.Many entrepreneurs choose to take this kind of financing mode and thus crowdfunding gets rapid development recently.However,crowdfunding is still in the emerging stage and has lots of problems such as the lack of experience in participants and information asymmetry.Therefore,how to raise the success rate of crowdfunding is an urgent problem.Nowadays,the successful crowdfunding platforms are Kickstarter,JD Finance,zhongchou.com and hi.taobao.com.These crowdfunding platforms are belonging to the reward-based crowdfunding mode.The reward-based crowdfunding is a mode that fund-raisers show the project information on crowdfunding platform and the public invest the project in interest.Thus,the key point turns to what information the fund-raiser should display on the platform and how they display information.Based on the theory of social exchange,our research divides the descriptive information of reward-based crowdfunding into two aspects and uses the elaboration likelihood model,taking trust as the center path and communication as the edge of path to discuss the influence of feature information quantity,project updates,quantity and number of comments on the rate of financing to complete.Using the 401 data set of domestic crowdfunding website,research,the empirical results show that the number of the characteristic information,project updates and comment number complete than has significant positive influence on financing,project type in the number of the characteristic information,project updates and comment number and financing to complete than play a regulatory role in the relationship between,different kinds of feature information impact on financing to complete than different.The main contribution of this paper is:first,based on the social exchange theory,our research uses the elaboration likelihood model to discuss the relationship among trust,communication and financing performance and explores the influence of descriptive information on financing performance.The results bring some insights to the research of crowdfunding financing performance.Second,our research introduces the characteristic information as an index of descriptive information,which is more objective and accurate since the index of alphanumeric or spelling accuracy cannot fully cover the characteristics of descriptive information.Our research provides some reference value to future research.