Cassar, GavinFriedman, Henry2023-05-222023-05-222009-09-012016-05-31https://repository.upenn.edu/handle/20.500.14332/1094We empirically examine the effect of self-efficacy on entrepreneurial investment choices. We identify various attributes of entrepreneurial investment and argue that higher self-efficacy is associated with more aggressive entrepreneurial investment decisions. We show that self-efficacy increases the likelihood of being a nascent entrepreneur and creating an operating business. Self-efficacy also increases the proportion of personal wealth invested in the venture and the amount of hours per week the entrepreneur devotes to the venture. These results are significant even when controlling for other known characteristics associated with entrepreneurial investment. Copyright © 2009 Strategic Management Society.This is the peer reviewed version of the following article: Cassar, G. and Friedman, H. (2009), Does self-efficacy affect entrepreneurial investment?. Strat.Entrepreneurship J., 3: 241–260. doi: 10.1002/sej.73, which has been published in final form at http://dx.doi.org/%2010.1002/sej.73. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving: http://olabout.wiley.com/WileyCDA/Section/id-820227.html#terms.entrepreneurinvestmentself-efficacyventuringAccountingArticle