The face of risk? VCs and their preference for (extreme) risk taking

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Lehrstuhl für Wirtschaftswissenschaften für Ingenieure und Naturwissenschaftler
Bachelor; Master


This work builds on the construct of facial width-to-height ratio (FWtHR). FWtHR refers to a measurement of facial bone structure that allows inferences about the average testosterone release during puberty in males, thus proxying for diverse character traits and personality attributes, such as risk preference, social dominance, or aggressiveness (e.g., Jia et al., 2014). In this paper, you will explore to what extent the endogenous risk preferences (i.e., FWtHR) of VC investors may differ from those of a control group, e.g., to clarify whether self-selection into this profession occurs.

Keywords: VC, Venture Capital, Entrepreneurship, Entrepreneurial Finance, Business Angels, Finance