Is the crowd sensitive to distance?—how investment decisions differ by investor type

Christina Geunther, Sofia Johan, Denis Schweizer

Research output: Contribution to journalArticle

39 Citations (Scopus)

Abstract

This paper presents the first evidence of the influence of geographic distance among retail, accredited, and overseas investors and venture location in an equity crowdfunding context. By analyzing investment decisions, we show that geographic distance is negatively correlated with investment probability for all home country investors. Our comparison of home country and overseas investors reveals that overseas investors are not sensitive to distance. However, when comparing only home country investors (subdivided into retail and accredited), we document that both investor types are similarly sensitive to the distance of possible ventures.
Original languageEnglish
Pages (from-to)289-305
Number of pages17
JournalSmall Business Economics
Volume50
Early online date6 Feb 2017
DOIs
Publication statusPublished - 2018

Fingerprint Dive into the research topics of 'Is the crowd sensitive to distance?—how investment decisions differ by investor type'. Together they form a unique fingerprint.

  • Profiles

    No photo of Sofia Johan

    Sofia Johan

    Person: Academic

    Cite this