PACIS 2019 Proceedings
Abstract
Although there are a variety of studies in IS field exploring funding behavior on crowdfunding and online microfinance platforms, the literature about how external monetary incentive will influence the crowdfunding behavior is very scarce. In this research, we utilize a “match day” event on Kiva to study how matching gift programs, as one of the most important tools of monetary incentives in crowdfunding, will affect the matched loans and unmatched loans. We find that matching gift programs benefit both matched and unmatched loans. Besides, we also find that the higher intensity of matching among competitor of the loan will induce lenders making higher contributions. The result indicates that matching gift programs have a positive spillover effect for unmatched loans, which support the use of matching gift programs on prosocial lending websites to increase overall funding.
Recommended Citation
Gao, Zhiyuan, "Does Monetary Incentive Increase Microfinance Lending? An Empirical Study of Matching Gift Programs on Kiva" (2019). PACIS 2019 Proceedings. 104.
https://aisel.aisnet.org/pacis2019/104