Does overconfidence affect venture capital firms’ investment?

IF 4.3 2区经济学 Q1 BUSINESS, FINANCE

Journal of Behavioral and Experimental Finance Pub Date : 2023-12-15 DOI:10.1016/j.jbef.2023.100884

Salma Ben Amor , Maher Kooli

引用次数: 0

Abstract

We examine the effect of overconfidence bias on VC firms’ investment. Using a sample of U.S. venture capital exits by IPOs and M&As between 2000 and 2019, we construct an overconfidence index and find a strong positive relationship between the follow-on funds and the degree of overconfidence. We also find that the higher the VC’s overconfidence, the shorter the time to raise new capital. Further, we show that overconfident VCs are more likely to exit their investments via IPOs rather than M&As and that the degree of overconfidence negatively and significantly affects the time to exit.

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过度自信是否会影响风险投资公司的投资？

我们研究了过度自信偏差对风险投资公司投资的影响。利用 2000 年至 2019 年间美国风险投资通过 IPO 和并购退出的样本，我们构建了过度自信指数，并发现后续资金与过度自信程度之间存在很强的正相关关系。我们还发现，风险投资公司的过度自信程度越高，筹集新资金的时间就越短。此外，我们还发现，过度自信的风险投资公司更有可能通过首次公开募股（IPO）而非并购（M&As）的方式退出投资，而且过度自信的程度会对退出时间产生显著的负面影响。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Journal of Behavioral and Experimental Finance BUSINESS, FINANCE-

CiteScore

13.20

自引率

6.10%

发文量

审稿时长

69 days

期刊介绍： Behavioral and Experimental Finance represent lenses and approaches through which we can view financial decision-making. The aim of the journal is to publish high quality research in all fields of finance, where such research is carried out with a behavioral perspective and / or is carried out via experimental methods. It is open to but not limited to papers which cover investigations of biases, the role of various neurological markers in financial decision making, national and organizational culture as it impacts financial decision making, sentiment and asset pricing, the design and implementation of experiments to investigate financial decision making and trading, methodological experiments, and natural experiments. Journal of Behavioral and Experimental Finance welcomes full-length and short letter papers in the area of behavioral finance and experimental finance. The focus is on rapid dissemination of high-impact research in these areas.