Can Culture Account for Investment Expectations?

Michael Lainé
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Michael Lainé: LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8 Vincennes-Saint-Denis

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Abstract: Until recently, risk-taking in investment decisions has been explained by cognitive biases and emotional urges. I would like to propose an alternative explanation, based on the work of Pierre Bourdieu, who links cultural capital to risk-taking. His concept of cultural capital has a very broad meaning, as it encompasses technical skills, aesthetic preferences, verbal facility, general cultural awareness, educational credentials, and artistic competencies. On theoretical grounds, one can assume that a high level of cultural capital enables the taming of uncertainty and allows for temporal horizons that cover longer terms. I test this hypothesis by conducting and analyzing a survey of 307 entrepreneurs. I define risktaking in two ways: (i) in a somewhat mainstream way, on the basis of expected utility, and (ii) in a heterodox way, in a qualitative, context-dependent setting. I find that, in both cases, there seems to be a link between cultural capital and risktaking. Furthermore, it seems to make financing issues more salient. I conclude by opening a discussion about the heterogeneity of entrepreneurs and their animal spirits.

Keywords: Bourdieu cultural capital entrepreneur investment expectations risktaking JEL Classification Codes: D21 D22 D81; Bourdieu; cultural capital; entrepreneur; investment expectations; risktaking JEL Classification Codes: D21; D22; D81 (search for similar items in EconPapers)
Date: 2016-01-02
Note: View the original document on HAL open archive server: https://hal.science/hal-04265074v1
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Published in Journal of Economic Issues, 2016, 50 (1), pp.72-94. ⟨10.1080/00213624.2016.1147895⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-04265074

DOI: 10.1080/00213624.2016.1147895

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