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The Effect of Local Religiosity on Financing Cross-Regional Entrepreneurial Projects Via Crowdfunding (Local Religiosity and Crowdfinancing)

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Abstract

This paper aims to develop a better understanding of the influence of the social environment in which entrepreneurs reside on the success of the crowdfunding projects they propose. Specifically, this study investigates on the importance of local religiosity on the propensity to support cross-regional crowdfunding projects. We theoretically discuss and empirically document, using a dataset of 5841 contributions on three Swiss reward-based and donation-based platforms, that local religiosity affects cross-regional resource flows by creating social interactions and enhancing trust. Furthermore, we find that cross-regional resource flows are more likely between regions sharing the same primary religion—whether Protestant or Catholic.

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Notes

  1. See Vitell (2009) for a review of the empirical literature.

  2. See longitudinal statistics on religious groups in Switzerland available at: www.bfs.admin.ch/bfs/de/home/statistiken/bevoelkerung/sprachen-religionen/religionen.html

  3. www.icareforyou.ch.wemakeit.com; www.ibelieveinyou.ch.wemakeit.com.

  4. The three NUTS levels in Switzerland: NUTS1: Switzerland; NUTS2: 7 Regions; NUTS3: 26 Cantons.

  5. Website consulted: www.bfs.admin.ch.specifically: https://www.bfs.admin.ch/bfs/de/home/statistiken/katalogedatenbanken/tabellen.assetdetail.4242775.html) www4.ti.ch/dfe/dr/ustat/ufficio/

  6. https://www.bfs.admin.ch/bfs/en/home/statistics/economic-social-situation-population/economic-and-social-situation-of-the-population/subjective-well-being-living-conditions.html).

  7. It has been recognized that the multinomial logit model should be used only when interdependence, or statistical correlation, between the utility functions of competing alternatives is not expected (Hausman and Wise, 1978; Williams, 1977). The nested logit model has been developed to accommodate varying degrees of similarity, or correlation, between alternatives (Williams, 1977).

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  1. Trinity Business School, Trinity College Dublin, The University of Dublin, Dublin, Ireland

    Francesca Di Pietro

  2. Department of Business and Administration, University G. D’Annunzio Chieti-Pescara, Pescara, Italy

    Francesca Masciarelli

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  1. Francesca Di Pietro
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Di Pietro, F., Masciarelli, F. The Effect of Local Religiosity on Financing Cross-Regional Entrepreneurial Projects Via Crowdfunding (Local Religiosity and Crowdfinancing). J Bus Ethics 178, 429–443 (2022). https://doi.org/10.1007/s10551-021-04805-4

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