We are pleased to invite Prof. Jun Yang, Conrad Prebys Professor of Finance at the Kelley School of Business at Indiana University (https://kelley.iu.edu/faculty-research/faculty-directory/profile.html?id=JY4) to give a talk virtually titled, Trust in Crowdfunding: Evidence from a Fundraising Campaign on January 28, 2022, at 11:30 am EST – 12:30 pm EST at the Manning School - Accounting Speaker Series. Hope to see you all at the presentation.
Abstract:
Despite the importance of trust in determining economic outcomes, little is known about what facilitates or hinders interpersonal trust. Using a randomized field experiment, we examine the role of trust and the determinants of perceived trustworthiness in the context of crowdfunding. The key feature of the experiment involves randomized rotations of the campaign design, which differ in the profile photo, the level of detail in the campaign description, and the update status. Survey participants then independently judge the perceived trustworthiness of the campaign. We find that while posting updates significantly increases perceived the trustworthiness of the campaign and the funds raised, having a more detailed description has little effect. Our follow-up survey reveals that the differential effects are driven primarily by salience. Interestingly, displaying a white or male profile photo improves the trustworthiness score and generates a higher contribution level, which can be explained by white participants’ (and donors’) and male participants’ (and donors’) preferences. Finally, we find that the effects of campaign updates and the profile photo disappear when donors are directly connected to the fundraising team, highlighting the authentication and trust-transmission role of social networks.
Registration:
https://umasslowell.co1.qualtrics.com/jfe/form/SV_3mHO6faL3OUl7h4