Featured Research

from universities, journals, and other organizations

Stereotypes can affect how women 'angels' invest, according to new study

Date:
July 14, 2011
Source:
Oregon State University
Summary:
Stereotypes about gender affect investment decision-making, even among successful women, researchers concluded in a new study on how gender affects investing strategies. Examining angel funds, or groups of wealthy investors who pool resources to make investments into a diverse array of start-up businesses, researchers found that the proportion of women angel investors in a group is related to the number of investments made by the group.

Stereotypes about gender affect investment decision-making, even among successful women, researchers concluded in a new study on how gender affects investing strategies.

Related Articles


Examining angel funds, or groups of wealthy investors who pool resources to make investments into a diverse array of start-up businesses, researchers found that the proportion of women angel investors in a group is related to the number of investments made by the group. When women comprised more than 10 percent of the investment group, their presence became associated with increased investments.

John Becker-Blease, of Oregon State University, and Jeff Sohl, of the University of New Hampshire , co-authored the study, which is out in the July issue of the journal Entrepreneurship, Theory and Practice.

"It is well-documented that women are, on average, more cautious investors than men and so we expected to find that the higher the proportion of women in the angel groups, the less likely the angel group was to make an investment," said Becker-Blease, an assistant professor of finance in OSU's College of Business.

However, the study results surprised them.

"Contrary to our expectations, we found that only when women were in a very small minority was their presence associated with a decrease in investments," Becker-Blease said.

The researchers said this phenomenon could be related to something psychologists call "stereotype threat." According to this theory, when a stereotype exists about a person, that person will behave in a manner consistent with that stereotype when they are in a situation that highlights, or accentuates, this aspect of their status, whether that is gender, race or ethnicity.

Becker-Blease cited a past study that showed Asian female students performed relatively well on a math exam when their ethnic status was highlighted, and relatively poorly when their gender status was highlighted. Becker-Blease and Sohl believe something similar might be happening in angel groups.

"When there is only a handful of women participating in these groups, their status as women, who are less aggressive investors, induces greater reluctance to invest," Becker-Blease said, "but as the proportion of women increases, women investors are made less aware of their status, and invest with greater confidence."

According to Becker-Blease, these results are provocative and speak to the potential benefits of having more women investors participate in these important sources of funding for new businesses.


Story Source:

The above story is based on materials provided by Oregon State University. Note: Materials may be edited for content and length.


Journal Reference:

  1. John R. Becker-Blease, Jeffrey E. Sohl. The Effect of Gender Diversity on Angel Group Investment. Entrepreneurship Theory and Practice, 2011; 35 (4): 709 DOI: 10.1111/j.1540-6520.2010.00391.x

Cite This Page:

Oregon State University. "Stereotypes can affect how women 'angels' invest, according to new study." ScienceDaily. ScienceDaily, 14 July 2011. <www.sciencedaily.com/releases/2011/07/110714142143.htm>.
Oregon State University. (2011, July 14). Stereotypes can affect how women 'angels' invest, according to new study. ScienceDaily. Retrieved October 24, 2014 from www.sciencedaily.com/releases/2011/07/110714142143.htm
Oregon State University. "Stereotypes can affect how women 'angels' invest, according to new study." ScienceDaily. www.sciencedaily.com/releases/2011/07/110714142143.htm (accessed October 24, 2014).

Share This



More Mind & Brain News

Friday, October 24, 2014

Featured Research

from universities, journals, and other organizations


Featured Videos

from AP, Reuters, AFP, and other news services

Academic Scandal Shocks UNC

Academic Scandal Shocks UNC

AP (Oct. 23, 2014) A scandal involving bogus classes and inflated grades at the University of North Carolina was bigger than previously reported, a new investigation found. (Oct. 23) Video provided by AP
Powered by NewsLook.com
Working Mother Getaway: Beaches Turks & Caicos

Working Mother Getaway: Beaches Turks & Caicos

Working Mother (Oct. 22, 2014) Feast your eyes on this gorgeous family-friendly resort. Video provided by Working Mother
Powered by NewsLook.com
What Your Favorite Color Says About You

What Your Favorite Color Says About You

Buzz60 (Oct. 22, 2014) We all have one color we love to wear, and believe it or not, your color preference may reveal some of your character traits. In celebration of National Color Day, Krystin Goodwin (@kyrstingoodwin) highlights what your favorite colors may say about you. Video provided by Buzz60
Powered by NewsLook.com
First-Of-Its-Kind Treatment Gives Man Ability To Walk Again

First-Of-Its-Kind Treatment Gives Man Ability To Walk Again

Newsy (Oct. 21, 2014) A medical team has for the first time given a man the ability to walk again after transplanting cells from his brain onto his severed spinal cord. Video provided by Newsy
Powered by NewsLook.com

Search ScienceDaily

Number of stories in archives: 140,361

Find with keyword(s):
Enter a keyword or phrase to search ScienceDaily for related topics and research stories.

Save/Print:
Share:

Breaking News:

Strange & Offbeat Stories


Health & Medicine

Mind & Brain

Living & Well

In Other News

... from NewsDaily.com

Science News

Health News

Environment News

Technology News



Save/Print:
Share:

Free Subscriptions


Get the latest science news with ScienceDaily's free email newsletters, updated daily and weekly. Or view hourly updated newsfeeds in your RSS reader:

Get Social & Mobile


Keep up to date with the latest news from ScienceDaily via social networks and mobile apps:

Have Feedback?


Tell us what you think of ScienceDaily -- we welcome both positive and negative comments. Have any problems using the site? Questions?
Mobile: iPhone Android Web
Follow: Facebook Twitter Google+
Subscribe: RSS Feeds Email Newsletters
Latest Headlines Health & Medicine Mind & Brain Space & Time Matter & Energy Computers & Math Plants & Animals Earth & Climate Fossils & Ruins