Publication Type

PhD Dissertation

Version

publishedVersion

Publication Date

9-2023

Abstract

Non-profit organisations (NPOs) find it increasingly harder to engage donors and raise funds from the public. Post-pandemic: the emphasis on tactics to raise funds online through donation-based crowdfunding (DCF) platforms has surged in importance for both NPO survival and continued beneficiary aid. However, unlike equity-based crowdfunding platforms where campaign organisers are obligated to provide investors with tangible returns based on funding milestones, NPOs on DCF platforms do not have to adhere to any funding milestones or are beholden to any tangible obligations towards donors. Consequently, NPOs are greatly incentivised to deploy cheap talk – non-binding, unverifiable messages and claims to persuade donors to give, thereby increase chances of crowding funding success. Specifically, we hypothesize that the rhetoric-based cheap talk of making campaign promises has a positive impact on funds raised, whereas the quantifiable cheap talk associated with suggesting high default contributions has a negative impact on funds raised. We also purport a positive interaction effect to exist between these two facets of cheap talk. Our empirical study based on campaign data from Singapore’s largest DCF platform supports these arguments.

Keywords

donation-based crowd funding, signaling theory, campaign promises, default contributions, cheap talk

Degree Awarded

PhD in Business (General Management)

Discipline

Finance | Finance and Financial Management

Supervisor(s)

ANG, Ser Keng

First Page

1

Last Page

86

Publisher

Singapore Management University

City or Country

Singapore

Copyright Owner and License

Author

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