In crowdfunding we trust: A trust-building model in lending crowdfunding

By Krystallia Moysidou, J. Piet Hausberg. Journal of Small Business Management, 2020

126 citations recorded by the source corpus.

ABSTRACT Trust critically affects the perceived probability of receiving expected returns on investment. Crowdfunding differs in many ways from traditional forms of investing. We have to ask what builds trust in this particular context. Based on literature regarding the formation of initial trust, we developed a model to explain which factors lead to crowdfunders’ trust in a crowdfunding project. We tested it on data collected from actual investors in a real project on a crowdlending platform. Our results show that trust in the crowdfunding platform and the information quality are more important factors of project trust than trust in the creator.

Subfields: Economics and Econometrics, Management Information Systems, Marketing

View Paper: https://www.semanticscholar.org/paper/b4903df42d8283e8a56ea6c7839e9900daa21ccd