Investment motivations and UK business angels' appetite for risk taking: The moderating role of experience

Journal article


Croce, Annalisa, Ughetto, Elisa and Cowling, Marc 2019. Investment motivations and UK business angels' appetite for risk taking: The moderating role of experience. British Journal of Management. https://doi.org/10.1111/1467-8551.12380
AuthorsCroce, Annalisa, Ughetto, Elisa and Cowling, Marc
Abstract

In this paper we use a large UK survey of business angels (BAs) investing in two different publicly supported schemes to directly question the role that investment motivations play in shaping investors’ appetite for risk. We dive deeper into the relationship between investment reasons and risk taking, by exploring the potential for a moderating effect derived from BAs’ past experience (i.e. financial and entrepreneurial experience). Our analysis reveals that both investment reasons (for return and for passion) have substantial explanatory power in shaping angels’ risk attitude, but their effect is moderated by the investors’
prior experience. This key finding represents important empirical support for what has so far been anecdotal evidence concerning BAs’ appetite for risk when investing.

KeywordsBusiness Angels; Motivations; Risk Capital
Year2019
JournalBritish Journal of Management
PublisherWiley
ISSN1467-8551
Digital Object Identifier (DOI)https://doi.org/10.1111/1467-8551.12380
Web address (URL)http://hdl.handle.net/10545/625390
http://creativecommons.org/licenses/by-nc-nd/4.0/
hdl:10545/625390
Publication dates13 Aug 2019
Publication process dates
Deposited18 Nov 2020, 16:53
Accepted26 Jul 2019
Rights

Attribution-NonCommercial-NoDerivatives 4.0 International

ContributorsPolitecnico di Milano, Milan, Italy, Collegio Carlo Alberto, Torino, Italy and University of Derby
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