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

Author

Listed:
  • Jianhong Chen

    (University of New Hampshire)

  • Jeffrey E. Sohl

    (University of New Hampshire)

  • Wan-Chien Lien

    (National Yunlin University of Science and Technology)

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.

Suggested Citation

  • Jianhong Chen & Jeffrey E. Sohl & Wan-Chien Lien, 2023. "Angel Investors’ Political Ideology and Investments in Women-Owned Ventures," Journal of Business Ethics, Springer, vol. 188(2), pages 379-396, November.
    • Handle: RePEc:kap:jbuset:v:188:y:2023:i:2:d:10.1007_s10551-022-05302-y
    DOI: 10.1007/s10551-022-05302-y
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