The power of positivity? The influence of positive psychological capital language on crowdfunding performance

We extend the entrepreneurship literature to include positive psychological capital — an individual or organization’s level of psychological resources consisting of hope, optimism, resilience, and confidence — as a salient signal in crowdfunding. We draw from the costless signaling literature to argue that positive psychological capital language usage enhances crowdfunding performance. We examine 1,726 crowdfunding campaigns from Kickstarter, finding that entrepreneurs conveying positive psychological capital experience superior fundraising performance. Human capital moderates this relationship while social capital does not, suggesting that costly signals may, at times, enhance the influence of costless signals. Post hoc analyses suggest findings generalize across crowdfunding types, but not to IPOs.


Publication Date:
Apr 03 2018
Date Submitted:
Jul 10 2019
Pagination:
470-492
ISSN:
0883-9026
Citation:
Journal of Business Venturing.
33
4

Note: The file is under embargo until: 2021-12-31



 Record created 2019-07-10, last modified 2019-08-06

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