Impact of positive illusions and experience on decision to invest in own new venture

• Authors: Andrea Zelienková

Title variants

SK

Vplyv pozitívnych ilúzií a skúseností na rozhodnutie investovať do vlastného podniku

• Languages of publication: EN

Abstracts

EN

Hypotheses. 1) Individuals exhibiting higher positive illusions (overconfidence, unrealistic optimism, illusion of control) would take higher risk manifested in opportunity evaluation and investment decision. 2) Risk attitudes will mediate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. 3) Experience will moderate the relationship between positive illusions and risk taking manifested in opportunity evaluation and investment decision. Statistical analysis and results. 1) Using simple linear regression it was found that only unrealistic optimism for rare positive events and illusion of control predicted risk taking manifested in investment decision. None of positive illusions explained opportunity evaluation. 2) Using PROCESS macro for mediation analysis it was found that domain-specific risk perception, rather than general risk tolerance, is statistically significant mediator of the relationship between unrealistic optimism for rare positive events and investment decision. 3) Moderation analysis via PROCESS macro showed that only entrepreneurial experience moderates the relationship between unrealistic optimism for rare positive events and investment decision using own savings. The limitations concerning gender and domain specificity of methods are discussed in the study.

Keywords

EN

positive illusions; risk preferences; risk perception; risk taking

Discipline

• PSYCHOLOGY: PSYCHOLOGY

• Publisher: Institute of Psychology, Czech Academy of Sciences
• Journal: Československá psychologie (Czechoslovak Psychology)
• Year: 2021
• Volume: 65
• Issue: 3
• Pages: 269-285
• Document type: ARTICLE

Contributors

author

Andrea Zelienková

• Československá psychologie, redakce, Psychologický ústav AV ČR, v.v.i., Politických vězňů 7, 110 00 Praha 1, Czech Republic