Capital, Motives, and Their Link to Investment Intentions: The Moderating Role of the Financial Crisis in Greece

Abstract

This research examined the moderating role of the financial crisis on the relationship between capital/motives and investment intentions. Human and social capital, nonfinancial resources, and all motives except financial success related positively to investment intention. Social capital and the motive for financial success related positively to investment intention only for those affected by the crisis in a negative way. The motives for independence and recognition related positively to investment intention only for those affected by the crisis in a positive way, while the motive of self‐realization related positively to investment intentions particularly for those affected by the crisis in a positive way.

Linking young individuals' capital to investment intentions: Comparing two cultural backgrounds

“…This extends Liñán's (2008) findings showing that business students with entrepreneurial skills in Spain form positive perceptions regarding venture creation, and consider that their close social circles are supportive. In terms of the social capital, this study supports and extends previous findings postulating that social capital is directly linked to investment intentions in Greece among employed/unemployed individuals (Palamida et al, 2015) and that higher levels of social capital increase the likelihood of becoming an entrepreneur in Turkey (Cetindamar et al, 2011). In order to do so, we provide evidence that the proposed relationship is partially mediated by the role of control.…”

“…Human Capital was measured by means of skills derived from education and experience (Palamida, et al, 2015), Participants were asked to rate their level in six different skills gained through education and working experience. Social Capital was measured in terms of bonding and bridging social capital with scales that were adapted from Chen et al (2009).…”

“…The availability of human, social and financial capital can make it possible for an individual to invest in a venture. Previous research has provided evidence regarding the role of the diverse facets of capital in the formation of entrepreneurial intentions (Arenius and Minniti, 2005, Cetindamar et al, 2011, Davidsson and Honig, 2003 and in the investment intentions context (Palamida et al, 2015).…”

“…Venture creation and growth can be considered the output of different types of capital investment from various investors. Young bricoleurs may act as potential "alternative" investors that follow an effectuation process in order to engage in entrepreneurial activities (Sarasvathy, 2001) by investing their (human, social, financial) capital in an already identified entrepreneurial opportunity (Palamida et al, 2015). This opens a new research agenda that will focus on our better understanding of why and when investors may engage in entrepreneurial creation and growth by investing not exclusively financial resources.…”

“…Leitch, McMullan, and Harrison, 2013;Wright, Robbie, and Ennew, 1997), in this paper we focus on investment activities and potential investors (individuals from the general publicnot formal or informal investors -responsible for investing human, social and financial capital in a business idea that they truly believe in (e.g. Palamida, et al, 2015).…”