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Sean McMahon’s article published in Applied Psychology

Research co-authored by the assistant professor of entrepreneurship examines the effects of venture quality information and social information on participants’ willingness to invest in a new venture.

Sean McMahon, assistant professor of entrepreneurship, co-authored the article titled “Regulatory Focus and Information Cues in a Crowdfunding Context,” which was recently published in Applied Psychology.

McMahon and co-authors Michael P. Ciuchta, Chaim Letwin and Regan M. Stevenson aimed to understand how different types of information cues affect individuals differently, and whether this effect is contingent on the decision maker’s individual attributes.

The article’s abstract reads:

“It is well understood that information cues associated with an investment opportunity generally impact one’s willingness to participate in that opportunity. What is less well understood, however, is how different types of information cues affect individuals differently, and whether this effect is contingent on the decision maker’s individual attributes. Through a three-study experimental design involving a stimulated crowdfunding portal, this research examined the effects of venture quality information and social information on participants’ willingness to invest in a new venture. We hypothesized that participants’ responsiveness to these information cues was contingent on their regulatory focus. Our results were generally supported, although some counterintuitive findings emerged regarding prevention-focused individuals. From a practical standpoint, our results suggest potential concerns regarding the general enthusiasm for crowdfunding, as well as some mitigating factors.”

Olivia Hays,
Student
4/18/2016 2:50 PM