Joint effect of linguistic style and ethnicity on entrepreneurial fundraising: Evidence from equity crowdfunding

被引:9
作者
Jin, Xianzhe [1 ]
Li, Jingnan [2 ,3 ]
Gao, Jijun [2 ]
机构
[1] Sun Yat sen Univ, Business Sch, Shenzhen, Peoples R China
[2] Univ Manitoba, IH Asper Sch Business, Dept Business Adm, Winnipeg, MB, Canada
[3] 317E Drake Ctr, Winnipeg, MB R3T5V4, Canada
关键词
Linguistic styles; Entrepreneur?s ethnicity; Signalling theory; Linguistic framing perspective; Equity crowdfunding; SIGNALING THEORY; LANGUAGE; INFORMATION; PERFORMANCE; CATEGORIES; RACE; DISCRIMINATION; PERCEPTIONS; PERSUASION; IMPLICIT;
D O I
10.1016/j.intfin.2022.101660
中图分类号
F8 [财政、金融];
学科分类号
0202 ;
摘要
Drawing on both signalling theory and the linguistic framing perspective, we propose that the effectiveness of linguistic styles used by entrepreneurs when pitching their ideas to investors, manifested as funding success, depends on entrepreneurs' ethnicity (white vs. non-white). Using a sample of 430 equity crowdfunding projects, we found that the use of a past-oriented linguistic style and concrete linguistic style led to greater funding outcomes for ventures with minority founders than it did for those with white founders. A future-oriented linguistic style, on the other hand, was found to be more beneficial for ventures with white founders. In addition, we found a consistent pattern of results using the racial composition of an entrepreneurial team rather than the race of individual founders, which implies that investors' biases are not only limited to in-dividual founders' ethnicities, but also persist regarding the wider entrepreneurial team.
引用
收藏
页数:17
相关论文
共 74 条
[21]   Putting Framing in Perspective: A Review of Framing and Frame Analysis across the Management and Organizational Literature [J].
Cornelissen, Joep P. ;
Werner, Mirjam D. .
ACADEMY OF MANAGEMENT ANNALS, 2014, 8 (01) :181-235
[22]   Resolving Information Asymmetry: Signaling, Endorsement, and Crowdfunding Success [J].
Courtney, Christopher ;
Dutta, Supradeep ;
Li, Yong .
ENTREPRENEURSHIP THEORY AND PRACTICE, 2017, 41 (02) :265-290
[23]   Investors' choices between cash and voting rights: Evidence from dual-class equity crowdfunding [J].
Cumming, Douglas ;
Meoli, Michele ;
Vismara, Silvio .
RESEARCH POLICY, 2019, 48 (08)
[24]   Funders' positive affective reactions to entrepreneurs' crowdfunding pitches: The influence of perceived product creativity and entrepreneurial passion [J].
Davis, Blakley C. ;
Hmieleski, Keith M. ;
Webb, Justin W. ;
Coombs, Joseph E. .
JOURNAL OF BUSINESS VENTURING, 2017, 32 (01) :90-106
[25]   Gender Differences in the Perceived Effectiveness of Narcissistic Leaders [J].
De Hoogh, Annebel H. B. ;
Den Hartog, Deanne N. ;
Nevicka, Barbora .
APPLIED PSYCHOLOGY-AN INTERNATIONAL REVIEW-PSYCHOLOGIE APPLIQUEE-REVUE INTERNATIONALE, 2015, 64 (03) :473-498
[26]   Talking about a revolution? Costly and costless signals and the role of innovativeness in equity crowdfunding [J].
Di Pietro, Francesca ;
Grilli, Luca ;
Masciarelli, Francesca .
JOURNAL OF SMALL BUSINESS MANAGEMENT, 2023, 61 (02) :831-862
[27]   FRAMING - TOWARD CLARIFICATION OF A FRACTURED PARADIGM [J].
ENTMAN, RM .
JOURNAL OF COMMUNICATION, 1993, 43 (04) :51-58
[28]   Why are black-owned businesses less successful than white-owned businesses? The role of families, inheritances, and business human capital [J].
Fairlie, Robert W. ;
Robb, Alicia M. .
JOURNAL OF LABOR ECONOMICS, 2007, 25 (02) :289-323
[29]   Legitimate to whom? The challenge of audience diversity and new venture legitimacy [J].
Fisher, Greg ;
Kuratko, Donald F. ;
Bloodgood, James M. ;
Hornsby, Jeffrey S. .
JOURNAL OF BUSINESS VENTURING, 2017, 32 (01) :52-71
[30]   How Does Race and Ethnicity Affect Persistence in Immature Ventures? [J].
Freeland, Robert E. ;
Keister, Lisa A. .
JOURNAL OF SMALL BUSINESS MANAGEMENT, 2016, 54 (01) :210-228