I can do better: How entrepreneurial hubris affects acquisition exit and/or new venture growth

Although hubris has long been recognized in the entrepreneurship literature, most studies focus on entries and relatively few examine the context of exits. To help fill in the gap, we ask: How does entrepreneurial hubris affect exit by acquisition and/or new venture growth? Using a sample of new ventures and acquisitions in the U.S. computer industry, we explore whether venture CEOs with greater hubris are less apt to choose acquisition exits. We also examine contextual factors that may strengthen or weaken the effect. Specifically, the impact of entrepreneurial hubris is expected to be stronger in older and larger ventures. Moreover, the effect of entrepreneurial hubris may be intensified in ventures that are backed by prominent venture capitalists and those that ally with established firms. Finally, for ventures that did not accept acquisition offers, we investigate whether entrepreneurial hubris affects their subsequent growth.