Abstract

Despite the importance of exit to both entrepreneurs and investors, little is known about what factors influence their intentions and motivations to voluntarily remain with or leave their businesses (DeTienne, 2008). With regard to external investors, previous exit studies have focused on investor preferences with regard to how (e.g. IPO, acquisition, trade sale) and when to exit, determinants of these exit preferences and the role of contracts in the exit decision (see, for instance, Mason and Harrison, 2002; Hellmann, 2006). None of them have looked into their intentions to exit though, nor approached this decision from a socio-psychological point of view. With regard to entrepreneurial exit, only recently have researchers begun to look into this crucial aspect of the entrepreneurial life cycle (DeTienne, 2008; Wincent et al., 2008). Therefore, building on and extending conflict theory, this paper studies the impact of perceived task and relationship conflicts as well as latent conflicts (as actual goal incompatibilities) between angel investors and entrepreneurs on their intentions to remain (invested) in the company.

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