The Role of Voluntarily Disclosed Information on Crowdfunding Success: Evidence From Kickstarter

Abstract

Information crowdfunding discloses deviates from mainstream business disclosures in several important ways. In this study, we examine one aspect of this information phenomenon, i.e., the textual, nonmonetary, nonfinancial content of voluntary crowdfunding disclosures. We build on literature on voluntary disclosure, crowdfunding, and content analysis by examining how voluntary disclosure impacts funding success on one of the most successful crowdfunding websites, Kickstarter. Using a large sample of over two years of projects (102,967 projects), we find that the volume and content of voluntary disclosure impact funding success, and that those main effects differ based on discloser credibility and market competition in ways consistent with prior voluntary disclosure literature. Our results have implications for crowdfunding and regulators by providing new insight into crowdfunding stakeholder decision-making.