The relationship between business angels' psychological attributes and investments in successful portfolio ventures: an empirical investigation using twitter data

ALTMEIER, Angela; FISCH, Christian

doi:10.1111/1467-8551.12783

Article (Scientific journals)

The relationship between business angels' psychological attributes and investments in successful portfolio ventures: an empirical investigation using twitter data

ALTMEIER, Angela; FISCH, Christian

2023 • In British Journal of Management

Peer Reviewed verified by ORBi

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https://hdl.handle.net/10993/58341

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10.1111/1467-8551.12783

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Abstract :

[en] The psychological attributes of business angels are an important but understudied determinant of business angels' investment behaviour. We derive hypotheses on how psychological attributes (i.e. clout, risk-taking, analytical thinking) affect business angels' investments in successful portfolio ventures. Our theorized mechanisms draw on cognitive biases (i.e. overconfidence bias, loss-aversion bias, confirmation bias) to explain how business angels' psychological attributes could affect their selection of portfolio ventures. Empirically, we perform a language-based text analysis using Twitter data to gain insights into the psychological attributes of 1511 US business angels who made 5209 investments. Our results show that the psychological attributes of clout, risk-taking and analytical thinking can indeed affect business angels' likelihood of investing in portfolio ventures that successfully acquire follow-on funding, highlighting the importance of psychological attributes in business angel investments.

Research center :

NCER-FT - FinTech National Centre of Excellence in Research
Interdisciplinary Centre for Security, Reliability and Trust (SnT) > EINT-Entrepreneurship, Innovation and New Technology

Disciplines :

General management, entrepreneurship & organizational theory

Author, co-author :

ALTMEIER, Angela ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > Entrepreneurship, Innovation, and New Technology (EINT)

FISCH, Christian ; University of Luxembourg > Interdisciplinary Centre for Security, Reliability and Trust (SNT) > Entrepreneurship, Innovation, and New Technology (EINT)

External co-authors :

Language :

English

Title :

The relationship between business angels' psychological attributes and investments in successful portfolio ventures: an empirical investigation using twitter data

Publication date :

2023

Journal title :

British Journal of Management

ISSN :

1045-3172

eISSN :

1467-8551

Publisher :

Wiley-Blackwell, Chichester, United Kingdom

Peer reviewed :

Peer Reviewed verified by ORBi

Focus Area :

Entrepreneurship and Innovation / Audit

Available on ORBilu :

since 30 November 2023

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