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Financial Innovation

Table 6 Regression using alternative word lists for tone ambiguity

From: Crowdfunding innovative but risky new ventures: the importance of less ambiguous tone

 

Cleantech sample

Matched non-cleantech sample

(1)

(2)

(3)

(4)

(5)

(6)

(7)

(8)

Success

Success

Money pledged

Money pledged

Success

Success

Money pledged

Money pledged

Uncertain_R1

−0.151***

 

−0.452***

 

−0.013

 

−0.183***

 
 

(−5.86)

 

(−4.97)

 

(−1.51)

 

(−5.34)

 

Weak modal_R1

 

−0.211***

 

−0.629***

 

−0.013**

 

−0.045***

  

(−5.91)

 

(−5.05)

 

(−2.09)

 

(−2.78)

Funding goal

−0.117***

−0.121***

0.610***

0.591***

−0.115***

−0.116***

0.555***

0.549***

 

(−10.51)

(−10.91)

(13.20)

(12.56)

(−22.91)

(−23.03)

(24.23)

(23.68)

Duration

−0.067*

−0.057

0.373**

0.421***

−0.009

−0.009

0.514***

0.524***

 

(−1.69)

(−1.39)

(2.59)

(2.88)

(−0.47)

(−0.48)

(6.85)

(6.91)

Rewards

0.124***

0.124***

0.221**

0.228**

0.116***

0.116***

0.091*

0.105**

 

(5.02)

(5.11)

(2.44)

(2.54)

(10.23)

(10.28)

(1.91)

(2.20)

Quick updates

0.080***

0.081***

0.121**

0.129**

0.107***

0.107***

0.265***

0.269***

 

(4.25)

(4.28)

(1.97)

(2.08)

(12.37)

(12.26)

(7.46)

(7.56)

Comment quantity

0.082***

0.081***

0.333***

0.328***

0.047***

0.046***

0.146***

0.130***

 

(14.08)

(13.86)

(14.97)

(15.13)

(26.83)

(34.45)

(21.41)

(23.08)

Backer sentiment

0.071***

0.068***

0.189***

0.187***

0.025***

0.024***

0.097***

0.095***

 

(4.06)

(3.95)

(3.41)

(3.42)

(3.11)

(3.03)

(3.77)

(3.68)

Total words

0.015

0.026

0.043

0.080

0.067***

0.067***

0.117***

0.111***

 

(0.78)

(1.35)

(0.70)

(1.30)

(7.43)

(7.48)

(3.31)

(3.13)

Featured

0.202***

0.200***

0.128*

0.130*

0.155***

0.155***

0.299***

0.303***

 

(7.39)

(7.22)

(1.80)

(1.82)

(12.69)

(12.67)

(7.59)

(7.63)

Social network

0.032***

0.032***

0.005

0.009

0.012**

0.012**

0.004

0.001

 

(3.03)

(3.00)

(0.18)

(0.32)

(2.39)

(2.39)

(0.23)

(0.09)

ARI

−0.003

−0.002

−0.013

−0.016

−0.002

−0.001

−0.011

−0.012*

 

(−0.77)

(−0.46)

(−0.89)

(−1.08)

(−0.87)

(−0.82)

(−1.58)

(−1.81)

Net positive

0.029***

0.032***

0.070**

0.074**

0.020***

0.021***

0.023

0.029

 

(2.77)

(3.05)

(2.04)

(2.08)

(4.21)

(4.33)

(1.14)

(1.44)

Risk index

−0.012

−0.011

−0.072*

−0.073*

−0.011**

−0.011**

−0.026

−0.029

 

(−0.96)

(−0.93)

(−1.71)

(−1.75)

(−1.97)

(−1.96)

(−1.24)

(−1.41)

Video

0.027***

0.027***

0.028

0.028

0.014***

0.014***

−0.002

−0.001

 

(3.24)

(3.11)

(0.80)

(0.80)

(3.75)

(3.75)

(−0.11)

(−0.05)

Image

0.038***

0.037***

0.028

0.029

0.008**

0.009**

0.019

0.023

 

(3.69)

(3.55)

(0.80)

(0.83)

(2.08)

(2.12)

(1.24)

(1.47)

Constant

  

1.599**

1.325*

  

1.513***

1.453***

   

(2.15)

(1.77)

  

(3.64)

(3.49)

Subcategory control

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Year controls

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Location controls

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Yes

Observations

1172

1172

434

434

4798

4798

1800

1800

Adjusted R2

  

0.743

0.741

  

0.690

0.687

Chi square

303.359

314.772

  

1172.397

1176.429

  

SUEST test on the difference of the coefficients (Chi square)

 

(1)−(5)

 

(2)−(6)

 

(3)−(7)

 

(4)−(8)

 

Uncertain

21.403***

   

8.088***

   

Weak modal

  

26.376***

   

23.009***

 
  1. This table provides the robustness test for the results in Table 4 by using the alternative independent variables Uncertain_R1 and Weak modal_R1. Specifically, we excluded risk related words to get new lists of uncertain (weak modal) words and defined variable Uncertain_R1 (Weak modal_R1) as the ratio of the number of new uncertain (weak modal) words to the total number of words in project description. The left panel provides the results for the cleantech sample. The right panel provides the results for the matched non-cleantech sample. In columns (1) and (2) and (5) and (6), the dependent variable is Success. We performed the logit regression and provided the marginal effect instead of the coefficients. In columns (3) and (4) and (7)-(8), the dependent variable is Money pledged. We performed the OLS regression and provided the coefficients. The t statistics adjusted for heteroscedasticity are reported in parentheses.
  2. *, **, and *** indicate significance at the 10%, 5%, and 1% levels, respectively
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