How perceived risk and return interacts with familism to influence individuals’ investment strategies: The case of capital seeking and capital providing behavior in new venture financing

Thomas A. Birtch, Kevin Yuk fai Au, Flora CHIANG*, Peter S. Hofman

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

Drawing on social capital and agency theories and using a multi-study research design, this study examined how perceived risk and return interacts with familism to influence individuals’ investment strategies in new venture financing, both capital seeking and capital providing behavior. We found that individuals high in familism are more likely to seek capital from and provide capital to family members than non-family members for new ventures. However, such relationships are more complex than prior research suggests because when individuals’ risk and return perceptions are included these interact with familism to differentially influence capital financing behavior directed at family versus non-family members. Contributions to theory and potential avenues for future research are discussed.

Original languageEnglish
Pages (from-to)471-500
Number of pages30
JournalAsia Pacific Journal of Management
Volume35
Issue number2
DOIs
Publication statusPublished - 1 Jun 2018

Scopus Subject Areas

  • Business and International Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

User-Defined Keywords

  • Agency theory
  • Entrepreneurship
  • Familism
  • Family business
  • Informal investment
  • New venture financing
  • Social capital theory

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