・Lecturer：Anh Vu(Waseda Institute for Advanced Study Visiting Professor
Original affiliation: Senior Lecturer, University of Sussex, U.K. )
・Lecturer Info: https://profiles.sussex.ac.uk/p316727-anh-vu/about
・Title: Language, Competition, and Equity Crowdfunding
・Day and Time: Feb 6, 2025 6:30pm-
・Abstract:
This study examines the role of language in online equity crowdfunding, focusing on linguistic metrics in crowdfunding campaigns. Using data from Crowdcube, a leading equity crowdfunding platform in the UK, we analyse readability, tone, deception cues, and the use of promotional language. We study whether and to what extend they are driven by competitive pressure arising from crowdfunding competition, as well as their influence on crowdfunding success. Our findings reveal that as crowdfunding competition increases, so does the readability of crowdfunding pitches. Nevertheless, the tone of the pitches becomes less positive, fewer promotional words are used, and there exists a higher prevalence of deception cues. Further analysis of the relationship between linguistic dimensions and crowdfunding success indicates that readability and deception cues positively influence campaign outcomes. In contrast, a more positive tone is negatively associated with crowdfunding success, suggesting that overly optimistic language may undermine campaign credibility. However, following the Covid-19 pandemic, the use of a more positive tone is associated with greater crowdfunding success, implying a shift in investor perception in uncertain times.
