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Altruistic investment decision behavior in early-stage ventures

Author

Listed:
  • Kim Klyver

    (University of Southern Denmark)

  • Noel J. Lindsay

    (The University of Adelaide)

  • Suleiman K. “Sul” Kassicieh

    (University of New Mexico)

  • Gary Hancock

    (The University of Adelaide)

Abstract

In this study, we develop and test a gendered social capital model of altruistic investment behavior that explains why some informal investors expect high returns on their investments while others expect no payback at all. Prior literature predominantly assumes that informal investors engage in investment activities with a return on investment and profit in mind; however, other non-financial objectives for informal investment—e.g., altruistic informal investment—have also been suggested although their antecedents unexplored. We suggest altruistic investment behavior depends on life circumstances determined by social capital, gender, and their combination. Our empirical evidence supports these propositions.

Suggested Citation

  • Kim Klyver & Noel J. Lindsay & Suleiman K. “Sul” Kassicieh & Gary Hancock, 2017. "Altruistic investment decision behavior in early-stage ventures," Small Business Economics, Springer, vol. 48(1), pages 135-152, January.
    • Handle: RePEc:kap:sbusec:v:48:y:2017:i:1:d:10.1007_s11187-016-9771-4
    DOI: 10.1007/s11187-016-9771-4
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    2. Honjo, Yuji & Ikeuchi, Kenta & Nakamura, Hiroki, 2024. "Does risk aversion affect individuals’ interests and actions in angel investing? Empirical evidence from Japan," Japan and the World Economy, Elsevier, vol. 70(C).
    3. Bosbach, Moritz & Maietta, Ornella Wanda, 2019. "The Implicit Price for Fair Trade Coffee: Does Social Capital Matter?," Ecological Economics, Elsevier, vol. 158(C), pages 34-41.
    4. Wang, Zhan & McNally, Regina & Lenihan, Helena, 2019. "The role of social capital and culture on social decision-making constraints: A multilevel investigation," European Management Journal, Elsevier, vol. 37(2), pages 222-232.
    5. Shane, Scott & Drover, Will & Clingingsmith, David & Cerf, Moran, 2020. "Founder passion, neural engagement and informal investor interest in startup pitches: An fMRI study," Journal of Business Venturing, Elsevier, vol. 35(4).
    6. Boulu-Reshef, Béatrice & Kuechle, Graciela & Rohland, Luise Marie, 2024. "Signaling trustworthiness with the choice of a prosocial project: Theory and experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 108(C).
    7. Jeffrey Sohl, 2022. "Angel investors: the impact of regret from missed opportunities," Small Business Economics, Springer, vol. 58(4), pages 2281-2296, April.

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