Angel Investors’ Political Ideology and Investments in Women-Owned Ventures

Jianhong Chen (), Jeffrey E. Sohl () and Wan-Chien Lien ()
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Jianhong Chen: University of New Hampshire
Jeffrey E. Sohl: University of New Hampshire
Wan-Chien Lien: National Yunlin University of Science and Technology

Journal of Business Ethics, 2023, vol. 188, issue 2, No 10, 379-396

Abstract: Abstract To understand the ethical issue of gender inequality in entrepreneurial financing, we examine the effect of angel investors’ political ideology, the conservatism–liberalism continuum, on their investments in women-owned ventures. We propose that more conservative angel investors tend to have a lower percentage of investments in women-owned ventures in their portfolios. Moreover, drawing on the gender role congruity theory, we show that when investing in women-owned ventures, more conservative angels favor women-owned ventures with a higher percentage of male co-founders and operating in women-dominated industries. Our analysis, based on a longitudinal sample of 172 angels from 2010 to 2019, supports these hypotheses. Our study contributes to the literature by highlighting angel political ideology as a critical antecedent of the gender disparity in entrepreneurial financing.

Keywords: Angel investors; Political ideology; Women-owned ventures; Gender inequality; Ethics; Entrepreneurial financing (search for similar items in EconPapers)
Date: 2023
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DOI: 10.1007/s10551-022-05302-y

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