Does transparency facilitate the fundraising capacity of public welfare crowdfunding? An empirical examination on Weibo

Author:

Liang LingORCID,Xie JiqingORCID,Ren Jie,Wang Jialiang,Wang Chang

Abstract

PurposeInformation opacity in donation crowdfunding activities has constrained the healthy development of China’s public welfare activities. Addressing the trust crisis and enhancing public engagement warrants further investigation. This study aims to uncover the moderating effect of activity transparency by utilizing data from 1,029 donation crowdfunding projects on the Sina Weibo Public Welfare Social Platform. In this way, we seek to elucidate the impact of donation crowdfunding events on fundraising ability.Design/methodology/approachThis study selects text complexity, number of supporters, creator experience, and social capital as explanatory variables; innovatively selects the number of updates of online crowdfunding activities and total reading volume as moderating variables; selects the number of shares of crowdfunding activities as a mediating variable; and constructs a moderated mediation multiple regression model for fundraising ability.FindingsOur findings indicate that independent variables, such as text complexity, number of supporters, and social capital, can significantly affect the dependent variable, fundraising ability. However, creator experience does not influence fundraising ability. Furthermore, social interaction has a mediating effect, whereas activity transparency has a reverse moderating effect. These results indicate that social interaction can enhance the fundraising ability of donation crowdfunding events. However, with an increase in information transparency, the fundraising ability of social media decreases.Originality/valueThe originality of this research is in clarifying the internal factors affecting fundraising ability through induction, making bold assumptions, and focusing on how social media’s effective interaction and activity transparency will affect public welfare crowdfunding fundraising ability.

Publisher

Emerald

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