Advances in Entrepreneurial Finance: With Applications from Behavioral Finance and Economics
Advances in Entrepreneurial Finance brings together contributions from researchers from the fields of entrepreneurship, behavioral finance, psychology, and neuroscience to shed new light on the dynamics of decision making and risk taking by entrepreneurs and venture capitalists (VCs). Every new venture requires access to capital at competitive interest rates, and much has been written on general entrepreneurship by management scholars and financial contracting by financial economists using traditional finance theory with all its highly restrictive assumptions regarding decision makers’ cognitive capabilities and behavior. But recent developments in behavioral finance can now be applied to understand how entrepreneurs and VCs perceive risk and uncertainty and how they decide and act accordingly. Showcasing the latest research, this volume demonstrates that findings from the behavioral and neuroscience arenas can and do explain decision making by entrepreneurs and venture investors in the real world. Consequently, such findings have practical implications not only for entrepreneurs, venture capitalists, and their advisors, but also all government agencies and NGOs that want to support product and technological innovation, capital formation, job creation, and economic development.
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Advances in Entrepreneurial Finance: With Applications from Behavioral ...
No preview available - 2010
1.0 probability activity affect affect heuristic agency costs agency theory analysis assessment assets banks Behavioral Finance behavioral premiums biases brain chapter choice cognitive cost credit cards database decision maker decision problem decision process decision-making process discussed dopamine Economic emotions entrepreneurial finance entrepreneurs entrepreneurship example expected utility theory experience Federal Reserve firm’s framework gain domain heuristics important individual investment investors Journal judgment Kahneman lending literature loans loss aversion loss domain Management neural neurons neuroscience NFIB non-entrepreneurs Olsen optimism outcomes overconfidence perceived risk potential prediction prob probability weighting prospect theory PUP Trader rational Review risk and uncertainty risk attitude risk aversion risk perception risk premiums risk seeking role sample Slovic small business financing small firm financing sources Springer Science+Business Media statistical strategy studies suggests survey tion Tversky value function venture capital venture capitalists weighting functions Yazdipour