Xiao, Li and Steier, LIoyd (2019) Angel investing in China:group decision-making and the role of social contagion. In: RENT XXXIII - Research in Entrepreneurship and Small Business, 2019-11-272019-11-29, Seminaris Hotel.
Full text not available from this repository.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.