Advances in Entrepreneurial Finance [recurso electrónico] : 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. Front Matter....Pages i-x Introduction....Pages 1-8 Front Matter....Pages 9-9 A Behavioral Finance Approach to Decision Making in Entrepreneurial Finance....Pages 11-29 Beyond Agency Theory: Value Creation and the Role of Cognition in the Relationship Between Entrepreneurs and Venture Capitalists....Pages 31-43 Financial Risk Perceptions: A Behavioral Perspective....Pages 45-67 Contribution of Neuroscience to Financial Decision-Making....Pages 69-92 Uncertainty Is Psychologically Uncomfortable: A Theoretic Framework for Studying Judgments and Decision Making Under Uncertainty and Risk....Pages 93-117 Front Matter....Pages 119-119 The Changing Landscape of Small-Firm Finance....Pages 121-139 Applications of Behavioral Finance to Entrepreneurs and Venture Capitalists: Decision Making Under Risk and Uncertainty in Futures and Options Markets....Pages 141-172 Insights into the Psychological Profiles of Entrepreneurs....Pages 173-181 Front Matter....Pages 183-183 Firm Failure Prediction Models: A Critique and a Review of Recent Developments....Pages 185-204 The Evolution of Entrepreneurs and Venture Capitalists....Pages 205-217 Statistical Databases for Research on the Financing of Small and Start-Up Firms in the United States: An Update and Review....Pages 219-250 Back Matter....Pages 251-254 A behavioral finance approach to decision making in entrepreneurial finance -- Rassoul Yazdipour Beyond agency theory : value creation and the role of cognition in the relationship between entrepreneurs and venture capitalists -- Peter Wirtz Financial risk perceptions : a behavioral perspective -- Robert A. Olsen Contribution of neuroscience to financial decision-making -- Richard W. Ackley, Lukasz M. Konopka Uncertainty is psychologically uncomfortable : a theoretic framework for studying judgments and decision making under uncertainty and risk -- William P. Neace ... [et al.] The changing landscape of small firm-finance -- William Dunkelbert, Jonathan A. Scott Applications of behavioral finance to entrepreneurs and venture capitalists : decision making under risk and uncertainty in futures and options markets -- Fabio Mattos, Philip Garcia Insights into the psychological profiles of entrepreneurs -- Hersh Shefrin Firm failure prediction models : a critique and a review of recent developments -- Richard L Constand, Rassoul Yazdipour The evolution of entrepreneurs and venture capitalists -- Martin Sewell Statistical databases for research on the financing of small and start-up firms in the United States : an update and review -- Charles Ou.