The Influence Of Social Trust Level On The Performance Of Network Crowdfunding

In the background of the Internet era,crowdfunding for online products has brought great convenience to the financing and publicity of small and medium-sized start-ups.However,as far as China's current situation is concerned,product crowdfunding is still in the preliminary exploration stage.There are still some loopholes in relevant laws and regulations.At this point,whether the project can successfully raise financing mainly depends on mutual trust.In other words,it is an important factor for the performance of project that how to earn the trust of investors.Based on Trust Theory,Information Asymmetry Theory,Transaction Cost Theory,Reputation Mechanism Theory and Rational Behavior Theory,this paper believes that social trust level can enhance crowdfunding performance from four aspects,including reducing information asymmetry,reducing transaction costs,strengthening reputation mechanism and promoting communication between the two parties.Based on the research perspective of the social trust level in the region where the project sponsors are located,this study takes all the financing projects released by JD Crowdfunding as samples to explore the positive correlation between social trust and crowdfunding performance from three aspects,namely financing performance,popularity and the number of investors.At the same time,this paper further analyzes the complementation effect of legal environment and marketization degree on the correlation between them.Finally,based on the relevant research conclusions,it provides feasible suggestions for enterprise financing in the new economic environment,the construction of network platform and macro-control by the government,and also provides theoretical guidance for the research on network crowdfunding.