When does crowdsourcing benefit firm stock market performance

•Crowdsourcing (CS) is a form of open innovation that involves dispersed individuals.•We investigate the effects of CS on firm stock market performance (FSMP).•Our event study examines the boundary conditions under which CS benefits FSMP.•With high brand value and investment opportunities, CS is beneficial for FSMP.•We lay the foundations for improving our understanding of when CS benefits FSMP.