[논문]Investigating the Influence of ESG Information on Funding Success in Online Crowdfunding Platform by Using Text Mining Technique and Logistic Regression

Kyu Sung Kim; Min Gyeong Kim; Francis Joseph Costello; Kun Chang Lee

doi:10.9708/jksci.2023.28.07.155

Investigating the Influence of ESG Information on Funding Success in Online Crowdfunding Platform by Using Text Mining Technique and Logistic Regression 원문보기

韓國컴퓨터情報學會論文誌 = Journal of the Korea Society of Computer and Information, v.28 no.7, 2023년, pp.155 - 164

Kyu Sung Kim (SKK Business School, Sungkyunkwan University) , Min Gyeong Kim (SKK Business School, Sungkyunkwan University) , Francis Joseph Costello (SKK Business School, Sungkyunkwan University) , Kun Chang Lee (SKK Business School)

초록
AI-Helper

본 논문은 온라인 크라우드펀딩 플랫폼에서 환경, 사회 및 지배구조 (ESG) 관련 내용이 자금 조달의 성공에 미치는 영향에 대해 조사한다. 최근, 산업에서 ESG의 중요성이 증가하고 있으며 ESG와 관련된 내용을 포함한 투자 제안도 증가하고 있다. 이에 따라, ESG 개념을 포함한 대부분의 투자 제안은 이러한 사회적 현상으로 인해 더 높은 펀딩 성공률을 보일 것이라는 관행적인 믿음이 존재한다. 우리는 투자 제안서의 어떤 특성이 투자의 증가와 관련이 있는지를 알아보기 위해 Kickstarter 데이터셋에서 9000개 이상의 온라인 사업 제안을 분석하여 조사했다. 먼저, 우리는 어휘 기반 측정과 특성 공학을 사용하여 환경과 사회 점수가 재무 지표와 어떻게 관련되는지를 결정했다. 다음 단계에서는 로지스틱 회귀분석을 사용하여 프로젝트 설명에 환경 및 사회적인 단어를 포함하는 것이 자금 조달에 미치는 영향을 연구했다. 일반적인 믿음과는 달리, ESG 문제를 중심으로 한 투자 제안이 소규모 사업가들에게는 성공할 가능성이 더 낮다는 것을 발견했다. 본 연구는 온라인 소규모 사업가의 환경에 대한 새로운 통찰력을 제공하며, 정보과학 및 크라우드펀딩 연구 분야에서의 새로운 연구 기회를 창출할 것이다.

Abstract ▼ AI-Helper

In this paper, we examine the influence of Environmental, Social, and Governance (ESG)-related content on the success of online crowdfunding proposals. Along with the increasing significance of ESG standards in business, investment proposals incorporating ESG concepts are now commonplace. Due to the ESG trend, conventional wisdom holds that the majority of proposals with ESG concepts will have a higher rate of success. We investigate by analyzing over 9000 online business presentations found in a Kickstarter dataset to determine which characteristics of these proposals led to increased investment. We first utilized lexicon-based measurement and Feature Engineering to determine the relationship between environment and society scores and financial indicators. Next, Logistic Regression is utilized to determine the effect of including environmental and social terms in a project's description on its ability to obtain funding. Contrary to popular belief, our research found that microentrepreneurs were less likely to succeed with proposals that focused on ESG issues. Our research will generate new opportunities for research in the disciplines of information science and crowdfunding by shedding new light on the environment of online micro-entrepreneurship.

주제어

표/그림 (4)

그림 Fig. 1. Research Model
표 Table 1. Dictionary of Economic, Environmental, and Social expressions
표 Table 2. Summary Statistics
표 Table 3. Summary Statistics

AI 본문요약
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대상 데이터

The data sample for our empirical analysis consists of 11,189 campaigns posted on Kickstarter between 2016 and 2019. Statistics for 162 classes across 9 nations are included.

이론/모형

The first method employs lexicon-based frequency measurement. To this end, we drew economically, environmentally, and socially relevant terminology from a lexicon with a good reputation in the academic community.

성능/효과

To this end, we drew economically, environmentally, and socially relevant terminology from a lexicon with a good reputation in the academic community. A total of 179 words representing economic, environmental, and social value orientations are included in the final English lexicon (Table 1).
Additionally, the financing rate for business proposals that use economic, environmental, and social expressions is much greater than the funding rate for proposals that focus solely on social issue expressions. Our investigation yielded primarily these types of conclusions.
We crawled the intended sum, checking the actual donation total, the number of images and videos used, and the content of any introductory materials. Among the completed projects, we found that 9,111 were scrapped before their goals were met, while just 2,078 were successful.
First and foremost, we must concentrate only on E and S when examining potential effects of ESG data on online crowdfunding platforms because these platforms show a wide range of startups being started by microbusiness entrepreneurs, and the majority of these startups do not have the luxury of thinking seriously about G or governance due to a number of survival-related urgent issues like how to find angel investors for their businesses.
First, this study's approach to text-based feature extraction for environmental and social expressions lays a solid foundation for future improvements in text analysis
Lastly, the findings of this study have the potential to contribute by presenting results that contradict the conventional belief that ESG-related content in the crowdfunding proposal has a positive effect on the fundraising rate. Micro-entrepreneurs can implement new strategies for their proposals or utilize methods that provide investors with more reliable information.
Our empirical research has the potential to be incorporated as a new metric used in management decision making across industries. Our reliable research contradicts conventional wisdom in the field of social psychology, allowing them to shift their approach to one that is more modern and effective. As a result, they will be more equipped to make practical, long-lasting changes to their own approaches to environmental and social management.
Second, the rather unstructured crowdfunding ecosystem provides an opportunity to reevaluate the environmental and social expression method. Since prior research is vague and limited, this study fills in the gap by providing actual evidence on the role of environmental and social values within the crowdfunding ecosystem.
The significance level and z-score for social expression are higher than those for ES score (z value: 3.247, p <0.001), indicating a significant influence.
Economic expression, the surrounding environment, and social expression are all interconnected, and their interrelationships can be examined in columns 5 and 6. The study found no statistically significant interaction between environmental expression and economic expression. The significance level and z-score for social expression are higher than those for ES score (z value: 3.
However, when coupled with economic narratives, a synergistic effect is generated. Thus, we find that a hybrid expression method that combines economic stories with environmental/social ones is more effective for crowdfunding campaigns.

후속연구

In addition, we use logistic regression to examine the effect of including environmental and social terms in proposal descriptions on funding success. By doing so, we intend to investigate the effect of environmental and social content on the funding success of investment proposals in an online microentrepreneurial environment. Our research methodology is depicted in Figure 1.
By showcasing its application (or lack thereof) in online crowdfunding, we hope to contribute to an understanding of environmental and social issues within the field of IS studies. We will also start a discussion on whether or not micro entrepreneurial investors will benefit from the embracement of the indiscreet usage of social issues by looking into the true significance of environmental and social expression communication in the crowdfunding arena.
For future studies, it will be important to use datasets that are more extensive and that span several domains in order to identify the specific elements that have led to our current understanding of this phenomena. In upcoming research, we plan to look into these factors that lower funding rates in further detail.
In future research, we plan to use multiple types of analytical methodologies to further enhance our forecasting powers. Implementing not only Machine Learning but also Deep Learning approaches can aid with crowdfunding situation understanding.
In sum, we hope that our research will shed new light on the dynamics of online micro-entrepreneurship, opening up new avenues for inquiry in the domains of information science and crowdfunding.
For future studies, it will be important to use datasets that are more extensive and that span several domains in order to identify the specific elements that have led to our current understanding of this phenomena. In upcoming research, we plan to look into these factors that lower funding rates in further detail.
By showcasing its application (or lack thereof) in online crowdfunding, we hope to contribute to an understanding of environmental and social issues within the field of IS studies. We will also start a discussion on whether or not micro entrepreneurial investors will benefit from the embracement of the indiscreet usage of social issues by looking into the true significance of environmental and social expression communication in the crowdfunding arena.

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