Research on the Relationship Between Venture Capitalists’ Trust in Entrepreneur and Their Investment Behaviors

2020 ◽  
Vol 0 (0) ◽  
Author(s):  
Sulei Li ◽  
Hongtao Yang
Keyword(s):  
Decision Making ◽  
Positive Impact ◽  
Investment Decision ◽  
Psychological State ◽  
Investment Behavior ◽  
Venture Capitalists ◽  
Investment Decision Making ◽  
Risk Appetite ◽  
Key Factor ◽  
The Relationship

AbstractVenture capitalists’ trust in entrepreneurs and their investment behaviors does not interact directly; Trust is a psychological state rather than static and stable phenomena. The relationship is affected by multiple factors. This study aims to develop a better understanding of the complex relationship and to show the degree of influence among factors, and to reveal “The Bewilderment of Decision-making” of VC. Based on SEM, this paper analyzes the relationship between the factors: the influencing factors at the initial stage of trust, trust, investor risk appetite, entrepreneurs’ behaviors, capitalists’ decision-making Behaviors, capitalists’ post-investment Behaviors. Our qualitative analysis is based on data by issuing 323 questionnaire surveys of 104 Chinese venture capital firms which are divided into different regions by Global Entrepreneurship Monitor (GEM). By analyzing various behaviors, we find that entrepreneurs’ behavior is a key factor in this relationship. Several factors studied earlier have a positive impact on the capitalist’s pre-investment decision-making behavior, but no significant impact on post-investment behavior. These results include trust and investor risk appetite. Through interviews, it was found that the capitalist’s post-investment behavior was related to the capitalist’s ability, resources, management mechanism and other factors.

scholarly journals The Relationship between Accounting Information Systems and Making Investment Decisions in the Industrial Companies Listed in the Saudi Stock Market

2017 ◽  
Vol 10 (6) ◽  
pp. 199 ◽  
Author(s):  
Qasim Alawaqleh ◽  
Mahmoud Al-Sohaimat
Keyword(s):  
Decision Making ◽  
Information Systems ◽  
Investment Decision ◽  
Accounting Information ◽  
Kingdom Of Saudi Arabia ◽  
Policy Makers ◽  
Accounting Information Systems ◽  
Industrial Companies ◽  
Investment Decision Making ◽  
The Relationship

The study aimed to measure the relationship between the investment decision-making in the industrial companies listed in the Saudi Stock Market with the (IVs) characteristics of the accounting information systems (appropriateness and reliability, comparability and understanding), and renovation and maintenance of the hardware and software. The problem in the Kingdom of Saudi Arabia is that the government depends on oil revenues more than on attracting investments, therefore, the importance of this study is constituted by the provision of critical recommendations to policy makers in the Kingdom of Saudi Arabia in order to overcome this issue and improve the investments. In order to achieve the objectives of this study, questionnaires were administered to 194 people representing the study population; a multiple regression (standard regression) was also used to test the study hypotheses. In general, all variables were positively significantly related with the investment decision-making.The findings of this study also showed that the independent variables explained more than 65% of the variance in investment decision-making. The Saudi government and policy makers should issue new regulations to increase the interest in accounting information systems in order to attract the investment. In relation to the practical and theoretical contribution, this study used new variables in the new model, such as renovation and maintenance of the hardware and software. Furthermore, practical contribution will help policy makers and the Saudi government to advance in this area and implement new policies for investors in order to protect the economy and the society stability due to the war in Yemen and Syria.

scholarly journals A Study on The Behavioural Aspects of Retail Investors for Investment Decision Making in Telangana State

2016 ◽  
Vol 1 (1) ◽  
pp. 51-59
Author(s):  
Jhansi Rani Boda ◽  
G. Sunitha ◽  
Parag Ray
Keyword(s):  
Decision Making ◽  
Behavioral Finance ◽  
Investment Decision ◽  
Investment Behavior ◽  
Behavioral Patterns ◽  
Behavioral Factors ◽  
Investment Decision Making ◽  
Retail Investors ◽  
Telangana State ◽  
Behavioural Aspects

Objective - Investment is the commitment of funds which have been saved from the current consumption with an expectation of favorable future returns. Investment behavior is concerned with choices made about the purchase of a significant number of securities for an individual or institutional account. Individual investment behavior is relatively a new area of research in behavioral finance. This study aims to identify the various behavioral patterns of retail investors and their investment decision making in the newly formed Telangana state of India. Methodology/Technique - Data were collected from a sample of 200 retail investors via a structured questionnaire. Factor analysis was then conducted to critically identify the behavioral patterns of the retail investors. Findings - The findings of this study indicate that the two behavioral factors of Heuristics and Prospect have significant impact on the investment decision making attitudes of the retail investors. Novelty - As a newly formed state in India, the Telangana state provides potential investment opportunities for retail as well as institutional investors. It is thus, highly imperative to explore how retail investors make investment decisions especially in the newly formed Telangana State in India Type of Paper: Empirical Keywords: Behavioral Factors; Behavioral Finance; Investment Behavior; Investment Decision Making; Retail Investor.

scholarly journals Animal spirits: Keynes' theory of rational investment decision-making under conditions of fundamental uncertainty

2009 ◽  
Vol 52 (1) ◽  
pp. 17-44
Author(s):  
Ognjen Radonjic
Keyword(s):  
Decision Making ◽  
Economic Crisis ◽  
Investment Decision ◽  
The Other ◽  
Investment Activity ◽  
Animal Spirits ◽  
Investment Decision Making ◽  
Key Factor ◽  
Fundamental Uncertainty ◽  
Rational Investment

Keynes's term, animal spirits, has been mistakenly confused with irrational decision-making. However, if we accept Keynes' assumption that future is fundamentally uncertain and nonergodic, animal spirits become key factor that makes continual process of investment decision-making possible. On the other hand, if animal spirits blunt, investment activity dwindles and makes emergence of deep economic crisis likely.

scholarly journals Impact of Behavioral Biases on Investment Decision Making with Moderating Role of Financial Literacy

2018 ◽  
Vol 6 (2) ◽  
pp. 34-41
Author(s):  
Rizwan Khalid ◽  
◽  
Muhammad Javed ◽  
Khurram Shahzad ◽  
◽  
...  
Keyword(s):  
Decision Making ◽  
Financial Literacy ◽  
Positive Impact ◽  
Investment Decision ◽  
Structure Questionnaire ◽  
Investment Decision Making ◽  
Overconfidence Bias ◽  
The Impact ◽  
Moderating Role

The objective of this study is to examine the Impact of Overconfidence bias and Herding bias on Investment Decision Making with Moderating Role of Financial Literacy. The population was Investor, Employee and Graduate Student. A sample of 200 was selected using convenience technique. Data were collected through structure questionnaire adopted from different papers. Correlation and Regression analysis were performed to examine the result. The Results show that overconfidence bias and herding bias have a positive impact on investment decision making and Financial Literacy has positive impact on investment decision making. Based on the results and discussions of the study findings as well as the limitations, theoretical and practical implications of the study have been provided.

Decision-making of investment in navigation safety improving schemes with application of cumulative prospect theory

2018 ◽  
Vol 232 (6) ◽  
pp. 710-724 ◽  
Author(s):  
Lei Wang ◽  
Qing Liu ◽  
Tongle Yin
Keyword(s):  
Decision Making ◽  
Prospect Theory ◽  
Investment Decision ◽  
Cumulative Prospect Theory ◽  
Decision Makers ◽  
Investment Decision Making ◽  
Risk Appetite ◽  
Safety Investment ◽  
Navigation Safety

Navigation safety improving investment aims at mitigating risk and improving safety of shipping system, while decision-makers’ attitudes toward the uncertainty of shipping safety possess a characteristic of “bounded rationality.” To study the tendency of shipping safety investment decision-making with different risk perception and appetite, a decision-making method based on cumulative prospect theory is proposed in this article. First, we extract the decision attributes through analyzing the factors affecting shipping safety investment. Then, according to cumulative prospect theory, the value function and the probability weighting function for calculating cumulative prospect values of shipping investment attributes are given. Under the risk-based multi-attribute group decision-making framework, linear programming model and projection method are introduced to aggregate the weights of attributes and decision-makers, respectively. Furthermore, through a case study, the proposed methodology is utilized in Three Gorges Dam area, and the desirable safety investment scheme is determined from a set of candidate alternatives. The case study shows not only validity and feasibility of the decision-making approach but also the mechanism of shipping safety investment decision-making with consideration of the behavior characteristics of decision-makers such as reference dependence, risk appetite distortion, and loss aversion.

scholarly journals An Analysis of Behavioral Biases in Investment Decision-Making

2019 ◽  
Vol 10 (4) ◽  
pp. 55 ◽  
Author(s):  
Geetika Madaan ◽  
Sanjeet Singh
Keyword(s):  
Decision Making ◽  
Positive Impact ◽  
Stock Exchange ◽  
Investment Decision ◽  
Investment Decisions ◽  
Individual Investors ◽  
Behavioral Biases ◽  
Investment Decision Making ◽  
Survey Responses ◽  
The Impact

Individual investor’s behavior is extensively influenced by various biases that highlighted in the growing discipline of behavior finance. Therefore, this study is also one of another effort to assess the impact of behavioral biases in investment decision-making in National Stock Exchange. A questionnaire is designed and through survey responses collected from 243 investors. The present research has applied inferential statistics and descriptive statistics. In the existing study, four behavioral biases have been reviewed namely, overconfidence, anchoring, disposition effect and herding behavior. The results show that overconfidence and herding bias have significant positive impact on investment decision. Overall results conclude that individual investors have limited knowledge and more prone towards making psychological errors. The findings of the study also indicate the existence of these four behavioral biases on individual investment decisions. This study will be helpful to financial intermediaries to advice their clients. Further, study can be elaborated to study other behavioral biases on investment decisions.

Oil and gas investment decision making—what's at risk?

2012 ◽  
Vol 52 (2) ◽  
pp. 679
Author(s):  
Nick Chipman ◽  
Rob Gray
Keyword(s):  
Decision Making ◽  
At Risk ◽  
Oil And Gas ◽  
Investment Decision ◽  
Investment Decisions ◽  
Shareholder Wealth ◽  
Human Interaction ◽  
Decision Quality ◽  
Investment Decision Making ◽  
Risk Appetite

When considering oil and gas developments in Australia, it is worthwhile to consider what's at risk. This extended abstract considers oil and gas investment decision-making from a first-principles basis, introducing case studies and learnings from past projects. Additionally, investment decisions can examined from the following perspectives: Setting the mould—decisions crystalise risk; therefore, decision quality is paramount. How do investment decisions serve as expression of corporate risk appetite? What is observable at the time versus what may lay silent? Too big to fail—can the organisation withstand the risk profile of its chosen investment slate? Is the owner or joint-venture structure sufficiently resilient to undertake the set of activities in question (e.g. deep-water drilling or LNG project developments)? Management charge—leadership and management motivations may drive projects into risky territory; are the appropriate feedback mechanisms in place? Dealing with complexity—project execution plans, layers and sub-contracting require formal and informal communication and governance to ensure successful delivery. Has complexity been dealt with? Or does structure mask hidden risk? Addressing human factors—human interaction and project organisational structures may drive perverse outcomes. What allowance and process reviews and assures against human motivation and influence? This extended abstract frames investment decision-making and project execution using practical examples, and shows how investment-decision quality is a primary driver of shareholder wealth creation. This has implications for the stage-gate capital processes, governance structures, and investment review practices presently in place in the industry.

Device Configuration and Investment Decision-Making of Fast Charging Station

2013 ◽  
Vol 291-294 ◽  
pp. 866-871
Author(s):  
Wen Xia Liu ◽  
Liu Liu ◽  
Shang Yuan Li ◽  
Bing Lu
Keyword(s):  
Decision Making ◽  
Queuing Theory ◽  
Investment Decision ◽  
Rate Of Return ◽  
Internal Rate Of Return ◽  
Charging Station ◽  
Investment Decision Making ◽  
Fast Charging ◽  
Optimized Model ◽  
The Relationship

This paper describe an approach to optimize the economy of electric vehicles’fast charging station investment with service satisfaction be constraints. An optimized model is proposed to study the relationship between the number of charge devices and economy of investment, which is based on the internal rate of return. Some service index like the queuing time and queuing length based on queuing theory are calculated to make sure the result reasonable and attainable for both investors and customers. At last, an example based on a conventional traffic flow and service intensity is simulated on Matlab to prove the effectiveness of the model.

scholarly journals Factors Affecting Investment Decision Making: Moderating Role of Investors Characteristics

2019 ◽  
pp. 1311-1320
Author(s):  
Salam A. Alshamy
Keyword(s):  
Decision Making ◽  
Corporate Governance ◽  
Investment Decision ◽  
Financial Education ◽  
Financial Information ◽  
Factors Affecting ◽  
Investment Decision Making ◽  
Relationship Of ◽  
The Relationship

The current study aimed to investigate the factors affecting investment decision making. Moreover, the moderating effects of age, gender, and financial information were also tested. The study utilized a quantitative research design for that the data was collected using a structured questionnaire. The questionnaire was sent to 570 individuals out of that 374 questionnaires were returned however 372 of the questionnaires were found to be useable. The study framework had 6 constructs namely heuristics, financial information, corporate governance, risk aversion, and experience were independent variables while investment decision making was dependent variable while age, gender and financial education were moderating variables. All the latent construct were measured using multi items based on 5 point Likert scales from 1 strongly disagree to 5 strongly disagree. The results found the Heuristics, Risk Aversion, Financial Information, Corporate Governance and Experience to be significant factors affecting the investment decision making. Moreover, the moderating effect of gender was found to be significant in the relationship of (financial information, corporate governance, and experience) and investment decision making. The moderating effect of age was found to be significant in the relationship of (Heuristics, Corporate Governance, and Experience) and investment decision making while the moderating role of financial education was found to be significant in the relationship of (financial information, corporte governance and experience) and investment decision making.

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