The Outperformance of Sustainable Crowdfunding: Empirical Insights from Asian Economies

This paper examines the role of sustainability in crowdfunding outcomes across Asian emerging markets, where institutional frameworks vary widely. We show that sustainable projects enjoy a higher success rate, particularly in the environment category, as sustainability functions as a salient signal that reduces uncertainty and builds legitimacy among backers. However, its impact on total funding amount is modest. The performance advantage of sustainable projects is significantly amplified in countries with weaker governance and lower environmental performance. Negative and significant interactions between sustainability and institutional indicators reveal a substitution effect: in institutional voids, voluntary sustainability commitments serve as credible alternatives to formal oversight. This effect diminishes in developed economies, where such claims are normative and less distinctive. The results emphasize that signaling efficacy is context-dependent, which advances understanding of sustainable finance in emerging markets. It offers practical guidance for entrepreneurs, platforms, and policymakers seeking to harness sustainability as a strategic tool for financial inclusion and impact.