Abstract
This study analyses the relationship between geographic space, social networks, and financial knowledge in interregional equity crowdfunding flows based on the concept of financial ecology. Using data from a leading Dutch equity crowdfunding platform, we find that interregional crowdfunding investment decreases with geographic distance. Furthermore, the negative effect of distance is weaker if interregional social networks are strong and if the investor region has a high concentration of the financial industry. The results extend the conceptual foundation of financial ecology by explaining how individual behaviors affect the macro-level output of a financial ecology.
| Original language | English |
|---|---|
| Pages (from-to) | 549-565 |
| Number of pages | 17 |
| Journal | Journal of Economic Geography |
| Volume | 24 |
| Issue number | 4 |
| Early online date | 15 Apr 2024 |
| DOIs | |
| Publication status | Published - Jul 2024 |
Bibliographical note
Publisher Copyright:# The Author (2024).
Funding
The authors thank Xing Li and Robert Huggins as well as participants of Academy of Management Annual Conference (2021) and World Finance Conference (2021) for their valuable comments. The authors are also grateful for the editorial guidance of Simona Iammarino, and for the constructive comments and suggestions of three anonymous reviewers. This research is financially supported by China Scholarship Council (CSC) under Grant No. 201706050160. This research is financially supported by China Scholarship Council (CSC) under Grant No. 201706050160.
| Funders | Funder number |
|---|---|
| World Finance Conference | |
| China Scholarship Council | 201706050160 |
| China Scholarship Council |
Keywords
- equity crowdfunding
- financial ecology
- financial knowledge
- local bias
- social networks