The Impact of Social Threat Framing on Crowdfunding Performance: The Moderating Roles of Family Involvement and Linguistic Style

Jingnan Li

The Impact of Social Threat Framing on Crowdfunding Performance: The Moderating Roles of Family Involvement and Linguistic Style

Jingnan Li

Innovation, Leadership, Strategy and Management

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Abstract

There has been increased use of social causes in crowdfunding proposals. Building on prior literature on issue framing in crowdfunding, we argue that framing of social threats, which integrates social framing and negative framing, can be particularly useful in attracting funding by creating a strong sense of urgency among investors. We find support for such a positive effect of social threat framing based on a sample of 217 U.S. equity crowdfunding firms from 2015 to 2021. Meanwhile, we find that social threat framing is more effective for family firms than nonfamily firms in improving crowdfunding performance, whereas local orientation presented in funding proposals does not show a significant effect. We also find that two styles of language - emotional expression and analytical thinking - present opposite moderation effects; the former strengthens the relationship, while the latter weakens it. The implications of the findings on crowdfunding success and effective communication are discussed.

Original language	English
Publication status	Published - 10 Jun 2023
Event	Rod Senft Family Business Conference - Duration: 9 Jun 2023 → 10 Jun 2023 https://umanitoba.ca/asper/2023-rod-senft-family-business-conference

Conference

Conference	Rod Senft Family Business Conference
Period	9/06/23 → 10/06/23
Other	The Rod Senft Family Business Conference is an opportunity for business and academics to connect and collaborate to strengthen the family enterprise footprint in Manitoba and Canada. This year's conference theme; Succession Planning in Family Enterprise-Align the Family and the Business will Follow, will focus on the intricacies of succession planning, whether it be management or ownership succession. The conference will run over two days with the first day focusing on engaging the larger community in a discussion regarding succession planning within the family enterprise sector. Day two will focus on some of the compelling research into family enterprise and how some of this research might guide critical decision making regarding future planning.
Internet address	https://umanitoba.ca/asper/2023-rod-senft-family-business-conference

Keywords

Equity-based crowdfunding
Emotional expression in language
Local orientation of business
Fundraising performance
Family business
Social threat framing
Analytical thinking in language

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title = "The Impact of Social Threat Framing on Crowdfunding Performance: The Moderating Roles of Family Involvement and Linguistic Style",

abstract = "There has been increased use of social causes in crowdfunding proposals. Building on prior literature on issue framing in crowdfunding, we argue that framing of social threats, which integrates social framing and negative framing, can be particularly useful in attracting funding by creating a strong sense of urgency among investors. We find support for such a positive effect of social threat framing based on a sample of 217 U.S. equity crowdfunding firms from 2015 to 2021. Meanwhile, we find that social threat framing is more effective for family firms than nonfamily firms in improving crowdfunding performance, whereas local orientation presented in funding proposals does not show a significant effect. We also find that two styles of language - emotional expression and analytical thinking - present opposite moderation effects; the former strengthens the relationship, while the latter weakens it. The implications of the findings on crowdfunding success and effective communication are discussed.",

keywords = "Equity-based crowdfunding, Emotional expression in language, Local orientation of business, Fundraising performance, Family business, Social threat framing, Analytical thinking in language",

author = "Jingnan Li",

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language = "English",

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url = "https://umanitoba.ca/asper/2023-rod-senft-family-business-conference",

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T1 - The Impact of Social Threat Framing on Crowdfunding Performance: The Moderating Roles of Family Involvement and Linguistic Style

AU - Li, Jingnan

PY - 2023/6/10

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N2 - There has been increased use of social causes in crowdfunding proposals. Building on prior literature on issue framing in crowdfunding, we argue that framing of social threats, which integrates social framing and negative framing, can be particularly useful in attracting funding by creating a strong sense of urgency among investors. We find support for such a positive effect of social threat framing based on a sample of 217 U.S. equity crowdfunding firms from 2015 to 2021. Meanwhile, we find that social threat framing is more effective for family firms than nonfamily firms in improving crowdfunding performance, whereas local orientation presented in funding proposals does not show a significant effect. We also find that two styles of language - emotional expression and analytical thinking - present opposite moderation effects; the former strengthens the relationship, while the latter weakens it. The implications of the findings on crowdfunding success and effective communication are discussed.

AB - There has been increased use of social causes in crowdfunding proposals. Building on prior literature on issue framing in crowdfunding, we argue that framing of social threats, which integrates social framing and negative framing, can be particularly useful in attracting funding by creating a strong sense of urgency among investors. We find support for such a positive effect of social threat framing based on a sample of 217 U.S. equity crowdfunding firms from 2015 to 2021. Meanwhile, we find that social threat framing is more effective for family firms than nonfamily firms in improving crowdfunding performance, whereas local orientation presented in funding proposals does not show a significant effect. We also find that two styles of language - emotional expression and analytical thinking - present opposite moderation effects; the former strengthens the relationship, while the latter weakens it. The implications of the findings on crowdfunding success and effective communication are discussed.

KW - Equity-based crowdfunding

KW - Emotional expression in language

KW - Local orientation of business

KW - Fundraising performance

KW - Family business

KW - Social threat framing

KW - Analytical thinking in language

M3 - Paper

T2 - Rod Senft Family Business Conference

Y2 - 9 June 2023 through 10 June 2023

ER -

The Impact of Social Threat Framing on Crowdfunding Performance: The Moderating Roles of Family Involvement and Linguistic Style

Abstract

Conference

Keywords

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