Equity crowdfunding is a popular method for financing business ventures, yet little is known about what drives backers to withdraw their commitments, especially when faced with unfavorable news. Drawing upon the expectancy violations theory and insights from impression management research, this study delves into the role of impression offsetting in reducing the likelihood of equity crowdfunding investors disengaging following negative information disclosures. Impression offsetting, a strategic technique organizational leaders employ to mitigate the repercussions of unexpected events, is introduced as a focal concept. We investigate the linkages between negative information disclosures and investor divestment and confidence via employing a vignette study. Specifically, we explore the impact of impression offsetting, encompassing both anticipatory and reactive strategies, on investors' responses to negative information disclosures. Furthermore, we apply peak-end theory to assess whether reactive or anticipatory impression offsetting more effectively moderates the link between negative information disclosures and investor divestment. This research contributes to the limited empirical evidence on anticipatory and reactive impression offsetting and introduces peak-end theory as a new theoretical lens to consider these relationships.
