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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

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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
http://www.rent-research.org/rent-2019

Conference

ConferenceRENT XXXIII - Research in Entrepreneurship and Small Business
Abbreviated titleRENT XXXIII
CountryGermany
CityBerlin
Period27/11/1929/11/19
Internet address

Abstract

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.