Abstract
In order to investigate the role of home bias in reward-based crowdfunding, we collect data of 3,284 projects from the Modian, a major crowdfunding platform in China, and conduct an empirical analysis. First, we confirm the existence of home bias in reward-based crowdfunding from three different perspectives: (1) visualizing the ratio of local investors with descriptive statistics, (2) testing the effect of geographic location with Logistic regression analyses, and (3) measuring the effect of creators’ moves with a quasi-experimental design. Second, we find that home bias matters for financing performance. Its positive impact may be negatively moderated by good information disclosure. Our findings have important implications for the successful financing of projects and the development of crowdfunding platforms.
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