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Gender match and negotiation: evidence from angel investment on Shark Tank

Author

Listed:
  • Michael Jetter

    (Centre for Business Data Analytics (UWA), IZA (Bonn), and CESifo (Munich))

  • Kieran Stockley

    (University of Western Australia)

Abstract

Using comprehensive data of 4893 interactions from the popular television show Shark Tank, we test whether gender match with entrepreneurs correlates with investors’ likelihood to extend funding offers. We find female investors are 35% more likely to engage with female (rather than male) entrepreneurs, while less systematic gender preferences emerge for male investors. Heterogeneity analyses suggest this result remains exclusive to non-male-dominated product categories, lending support to the industry representation hypothesis. We also find it is exclusive to ventures with lower asking valuations. Estimates are robust to the inclusion of a comprehensive set of control variables (such as asking valuation, investor-, and season-fixed effects) and a range of alternative specifications.

Suggested Citation

  • Michael Jetter & Kieran Stockley, 2023. "Gender match and negotiation: evidence from angel investment on Shark Tank," Empirical Economics, Springer, vol. 64(4), pages 1947-1977, April.
    • Handle: RePEc:spr:empeco:v:64:y:2023:i:4:d:10.1007_s00181-022-02305-6
    DOI: 10.1007/s00181-022-02305-6
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    More about this item

    Keywords

    Gender interaction effects; Gender differences; Angel investment; Venture capital financing; Field data; High stakes bargaining;
    All these keywords.

    JEL classification:

    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making
    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G24 - Financial Economics - - Financial Institutions and Services - - - Investment Banking; Venture Capital; Brokerage
    • G41 - Financial Economics - - Behavioral Finance - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making in Financial Markets
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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