Angel investment and first impressions

• 成果类型: Article
• 署名作者: Huang, Xing; Ivkovic, Zoran; Jiang, John Xuefeng; Wang, Isabel Yanyan
• 署名单位: Washington University (WUSTL); Michigan State University; Michigan State University; Michigan State University
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2023.05.001
• 发表日期: 2023
• 页码: 161-178
• 关键词: Angel investment; First impressions; Facial Traits; entrepreneurship; behavioral finance

摘要

We examine the role of first impressions in angel investor decision-making. Video stills of entrepreneurs pitching on the Shark Tank show and in Startup Battlefield competitions yield six measures of first impressions of entrepreneurs' facial traits and two principal components: one that captures general ability and the other that contrasts charm and managerial ability. We find positive associations between both components and the like-lihood of entrepreneurs receiving an investment offer or winning a competition round. Post-event business outcome analyses reveal that investors internalize entrepreneurs' gen-eral ability rationally but exhibit irrational tendencies when internalizing entrepreneurs' charm and managerial ability. Investment experience mitigates investors' irrational use of charm and managerial ability cues.(c) 2023 Elsevier B.V. All rights reserved.