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Angel investing in China: group decision-making and the role of social contagion

Research output: Contribution to conference - Without ISBN/ISSN Conference paperpeer-review

Publication date27/11/2019
<mark>Original language</mark>English
EventRENT XXXIII - Research in Entrepreneurship and Small Business - Seminaris Hotel , Berlin, Germany
Duration: 27/11/201929/11/2019


ConferenceRENT XXXIII - Research in Entrepreneurship and Small Business
Abbreviated titleRENT XXXIII
Internet address


We explore the interplay between traditional evaluation criteria and social contagion in affecting investing behaviors and decisions of groups’ investors. Using in-depth data from a 26-month inductive field study of angel investing groups, we build a grounded model of underlying contagion effects on investing decisions. We ascertain three dimensions of a group’s credibility - collective analysis, collective fits, and professional structure, which encourage investors to appreciate gut feel and follow the earlier decisions of others. Moreover, our data suggest three factors – intrinsic quality, uncertainty, and personal traits – that moderate social contagion effects on investing behaviors and decisions.