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

Journal Publication ResearchOnline@JCU
Birtch, Thomas A.;Au, Kevin Yuk-fai;Chiang, Flora F.T.;Hofman, Peter S.
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.

Journal

Asia Pacific Journal of Management

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Volume

35

ISBN/ISSN

1572-9958

Edition

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Issue

2

Pages Count

30

Location

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Publisher

Springer

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Publisher Location

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Publish Date

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Url

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Date

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EISSN

N/A

DOI

10.1007/s10490-017-9525-0