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Financial Innovation

Table 8 Regression after rectifying misspelled words

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_R3

−0.157***

 

−0.556***

 

−0.021

 

−0.249***

 
 

(−4.62)

 

(−4.93)

 

(−1.60)

 

(−5.06)

 

Weak modal_R3

 

−0.299***

 

−0.715***

 

−0.021**

 

−0.056***

  

(−5.70)

 

(−4.12)

 

(−2.51)

 

(−2.60)

Funding goal

−0.120***

−0.123***

0.611***

0.595***

−0.116***

−0.116***

0.552***

0.549***

 

(−10.67)

(−11.01)

(13.00)

(12.46)

(−22.91)

(−23.03)

(24.01)

(23.65)

Duration

−0.069*

−0.059

0.399***

0.396***

−0.008

−0.009

0.520***

0.525***

 

(−1.72)

(−1.47)

(2.76)

(2.68)

(−0.45)

(−0.49)

(6.93)

(6.92)

Rewards

0.128***

0.127***

0.212**

0.243***

0.116***

0.116***

0.093**

0.105**

 

(5.12)

(5.13)

(2.31)

(2.67)

(10.30)

(10.32)

(1.97)

(2.21)

Quick updates

0.086***

0.084***

0.148**

0.152**

0.107***

0.106***

0.267***

0.269***

 

(4.56)

(4.43)

(2.42)

(2.45)

(12.36)

(12.23)

(7.54)

(7.57)

Comment quantity

0.085***

0.085***

0.338***

0.330***

0.047***

0.046***

0.147***

0.129***

 

(13.29)

(13.77)

(15.07)

(15.09)

(24.76)

(34.56)

(20.44)

(22.90)

Backer sentiment

0.073***

0.068***

0.180***

0.186***

0.025***

0.024***

0.097***

0.095***

 

(4.25)

(3.89)

(3.20)

(3.36)

(3.11)

(3.02)

(3.78)

(3.68)

Total words

0.011

0.022

0.009

0.066

0.066***

0.067***

0.111***

0.111***

 

(0.54)

(1.10)

(0.14)

(1.07)

(7.33)

(7.48)

(3.14)

(3.11)

Featured

0.211***

0.206***

0.131*

0.129*

0.155***

0.155***

0.297***

0.302***

 

(7.75)

(7.51)

(1.84)

(1.78)

(12.66)

(12.65)

(7.53)

(7.62)

Social network

0.034***

0.032***

0.004

0.009

0.012**

0.012**

0.004

0.001

 

(3.19)

(2.94)

(0.14)

(0.32)

(2.40)

(2.40)

(0.26)

(0.08)

ARI

−0.003

−0.002

−0.017

−0.019

−0.001

−0.001

−0.011*

−0.012*

 

(−0.74)

(−0.48)

(−1.14)

(−1.25)

(−0.81)

(−0.78)

(−1.68)

(−1.82)

Net positive

0.032***

0.033***

0.067*

0.077**

0.020***

0.021***

0.021

0.029

 

(3.02)

(3.11)

(1.96)

(2.16)

(4.20)

(4.33)

(1.07)

(1.45)

Risk index

−0.010

−0.011

−0.062

−0.074*

−0.011**

−0.011**

−0.027

−0.029

 

(−0.83)

(−0.93)

(−1.47)

(−1.78)

(−1.99)

(−1.97)

(−1.29)

(−1.43)

Video

0.028***

0.028***

0.033

0.033

0.014***

0.014***

−0.003

−0.001

 

(3.37)

(3.27)

(0.98)

(0.92)

(3.73)

(3.74)

(−0.19)

(−0.06)

Image

0.040***

0.037***

0.032

0.031

0.009**

0.009**

0.021

0.023

 

(3.88)

(3.56)

(0.87)

(0.89)

(2.10)

(2.14)

(1.34)

(1.48)

Constant

  

1.694**

1.358*

  

1.557***

1.453***

   

(2.26)

(1.80)

  

(3.74)

(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

0.737

  

0.690

0.687

Chi square

301.654

325.072

  

1172.898

1176.354

  

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

 

(1)−(5)

 

(2)−(6)

 

(3)−(7)

 

(4)−(8)

 

Uncertain

12.068***

   

6.553**

   

Weak modal

  

24.517***

   

15.154***

 
  1. This table provides the robustness test for the results in Table 4 by using alternative independent variables Uncertain_R3 and Weak modal_R3. Specifically, we replaced misspelled ambiguous words in the project description with their correct form and defined variable Uncertain_R3 (Weak modal_R3) as the ratio of the number of uncertain (weak modal) words to the total number of words. 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) and (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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