The Influence of Dispositional Affect and Cognition on Venture Investment Portfolio Concentration
by Chien Sheng Richard Chan, Haemin Dennis Park
ARTICLE | Journal of Business Venturing | Vol. 28, 2013
Abstract
We explore how an investor's dispositional affect and cognitive style influence venture investment portfolio concentration. Based on a field study using a sample of 128 judges from a business plan competition, we find that high positive affectivity investors construct more concentrated investment portfolios than their low positive affectivity counterparts, whereas high negative affectivity investors construct more diversified investment portfolios than their low negative affectivity counterparts. Further, investors who rely on analytical decision making display a weaker relationship between negative affectivity and investment diversification whereas investors who rely on emotion-based decision making display a stronger relationship between positive affectivity and investment concentration.
Popular Articles
-
International Student Profile: Kevin Kurnia
Oct 12 2017
-
Start your application to join PHBS!
Sep 18 2018
-
PHBS Opening a Campus in UK: Se...
Feb 22 2017
Latest News
-
Peking University HSBC Business S...
Time:Dec 20 2019
-
Studious and Aspiring | Dean Hai...
Time:Dec 20 2019
-
PHBS Holds the Second PHBS Works...
Time:Dec 19 2019
Campus Events