The impact of ESG content on the relationship between investor response and online crowdfunding success

This is the authors' abstract. We don't add key points for this paper.

This study explores how online investor engagement affects crowdfunding success using empirical data from Korean crowdfunding campaigns. Unlike previous research, it focuses on the Korean market and examines the moderating role of ESG factors in investor engagement. The findings show that a higher number of supporters and detailed crowdfunding descriptions significantly enhance funding success, emphasizing social validation and transparency. However, likes do not significantly impact success, indicating that passive engagement does not always lead to financial commitment. Additionally, a higher volume of comments correlates with a higher failure rate, likely due to negative feedback and scepticism. For ESG-related crowdfunding, environmental and social initiatives strengthen the positive impact of investor engagement, with environmental projects reducing the negative effects of comments. This suggests that sustainability-conscious investors are more resilient to criticism. Conversely, governance-related crowdfunding does not significantly influence success, indicating that investors prioritize environmental and social dimensions over governance. These findings contribute to digital finance and sustainable investment research, offering insights for crowdfunding platforms and campaign organizers. By highlighting the role of ESG factors in investment behaviour, this study provides recommendations for optimizing crowdfunding strategies and improving fundraising success in sustainability-driven campaigns.