14. November 2019 : New Paper on Trust Formation in Crowdfunding
In their paper now published online in the Journal of Small Business Management (JSBM), Krystallia Moysidou (Warwick Business School) and Piet Hausberg investigate the formation of online trust in the context of lending crowdfunding.
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.
You can read and download the full paper here: