Mitigating Local Bias in Equity Crowdfunding: A Financial Ecology Perspective

Wanxiang Cai, Friedemann Polzin*, Erik Stam

*Corresponding author for this work

Research output: Contribution to journalArticle (Academic Journal)peer-review


This study analyses the relationship between geographic space, social networks, and financial knowledge in interregional equity crowdfunding flows based on the concept of financial ecology. Using data from a leading Dutch equity crowdfunding platform, we find that interregional crowdfunding investment decreases with geographic distance. Furthermore, the negative effect of distance is weaker if interregional social networks are strong and if the investor region has a high concentration of the financial industry. The results extend the conceptual foundation of financial ecology by explaining how individual behaviors affect the macro-level output of a financial ecology.
Original languageEnglish
Article numberlbae009
Number of pages17
JournalJournal of Economic Geography
Early online date15 Apr 2024
Publication statusE-pub ahead of print - 15 Apr 2024

Structured keywords

  • MGMT Strategy International Management and Business and Entrepreneurship


  • MGMT_Strategy_International_Management_and_Business_and_Entrepreneurship


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