AAA Spark Meeting of Regions

Crowdfunding Activity amid Economic Volatility: Evidence from the COVID-19 Pandemic

• In Event: FAR: Financial Statement Comparabiity and COVID-19 impact on organizational outcomes

Abstract

We test real options-based investment theory by investigating whether economic volatility affects entrepreneurial activities. Results from tests exploiting variation in pandemic-related economic volatility over time within nation, state, and county suggest that economic volatility curbs entrepreneurial activities.

Authors

• Nerissa C Brown, University of Illinois at Urbana-Champaign

• David Godsell, University of Illinois at Urbana-Champaign

• Russell Won Han, University of Illinois at Urbana-Champaign