A Personality Perspective on Business Angel Syndication

59 Pages Posted: 11 Nov 2018

See all articles by Jorn H. Block

Jorn H. Block

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Institute of Management (ERIM)

Christian Fisch

University of Trier - Faculty of Management; Erasmus University Rotterdam (EUR) - Department of Applied Economics; Erasmus Research Institute of Management (ERIM)

Martin Obschonka

University of Jena

Philipp G. Sandner

Frankfurt School of Finance & Management

Date Written: October 19, 2018

Abstract

The decision to syndicate investments in entrepreneurial finance has been explained through financial, networking, and resource-based perspectives. We posit that a personality perspective exists next to these three perspectives and hypothesize that the personality of business angels influences syndication behavior. Using data from 3,234 syndication decisions of 1,348 business angels, we find evidence for some of our predictions. By measuring personality through a comprehensive language analysis based on digital footprints in Twitter statements of business angels, we show that extraversion makes syndication more likely, whereas conscientiousness reduces the likelihood of syndication. Several sensitivity analyses underline the robustness of our main results. Further exploratory analyses assess the relationship between personality and syndicate composition as well as that between personality and venture success. Our study contributes to the entrepreneurial finance literature by adding and validating a new perspective to explain syndication behavior. In addition, our study contributes to research on the personality of business angels.

Keywords: Syndication, Business Angels, Personality, Twitter Data, Digital Footprints

JEL Classification: G23, G24, O16, D91

Suggested Citation

Block, Jorn Hendrich and Fisch, Christian and Obschonka, Martin and Sandner, Philipp, A Personality Perspective on Business Angel Syndication (October 19, 2018). Journal of Banking and Finance, Forthcoming, Available at SSRN: https://ssrn.com/abstract=3269808

Jorn Hendrich Block

University of Trier - Faculty of Management ( email )

D-54296
Germany

Erasmus University Rotterdam (EUR) - Institute of Management (ERIM) ( email )

Burgemeester Oudlaan 50
3000 DR Rotterdam, Zuid-Holland 3062PA
Netherlands

Christian Fisch (Contact Author)

University of Trier - Faculty of Management ( email )

Universit├Ątring 15
Trier, 54296
Germany
0049 651 2013033 (Phone)

HOME PAGE: http://www.unternehmensfuehrung.uni-trier.de

Erasmus University Rotterdam (EUR) - Department of Applied Economics ( email )

Netherlands

Erasmus Research Institute of Management (ERIM) ( email )

P.O. Box 1738
3000 DR Rotterdam
Netherlands

Martin Obschonka

University of Jena ( email )

F├╝rstengraben 1
Jena, 07743
Germany

Philipp Sandner

Frankfurt School of Finance & Management ( email )

Adickesallee 32-34
Frankfurt am Main, 60322
Germany

HOME PAGE: http://www.philipp-sandner.de

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