Activist homophily, activist signaling, and the acquisition of social capital by Black entrepreneurs: a field experiment

Last registered on April 08, 2026

Pre-Trial

Trial Information

General Information

Title
Activist homophily, activist signaling, and the acquisition of social capital by Black entrepreneurs: a field experiment
RCT ID
AEARCTR-0012263
Initial registration date
November 09, 2023

Initial registration date is when the trial was registered.

It corresponds to when the registration was submitted to the Registry to be reviewed for publication.

First published
November 17, 2023, 8:06 AM EST

First published corresponds to when the trial was first made public on the Registry after being reviewed.

Last updated
April 08, 2026, 5:08 PM EDT

Last updated is the most recent time when changes to the trial's registration were published.

Locations

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information

Primary Investigator

Affiliation
City College of New York

Other Primary Investigator(s)

PI Affiliation
UTSA

Additional Trial Information

Status
On going
Start date
2023-11-13
End date
2026-06-30
Secondary IDs
Prior work
This trial does not extend or rely on any prior RCTs.
Abstract
Black entrepreneurs in the United States are notably disadvantaged relative to their White counterparts. This disadvantage primarily stems from differential access to resources (Bates, Bradford, & Seamans, 2018). Although scholars have closely attended to differentials in the acquisition of financial capital by Black entrepreneurs (e.g., Fairlie, Robb, & Robinson, 2022; Younkin & Kuppuswamy, 2018), less attention has been given to differentials in the acquisition of social capital, or durable networks of social relationships granting access to actual and potential resources (Bourdieu, 1986). However, social capital is an important resource for entrepreneurs (Gedajlovic et al., 2013), and it is a form of capital particularly sensitive to racial dynamics (Putnam, 2007).

To explore the relationship between race and the acquisition of social capital by entrepreneurs, we offer a series of hypotheses tested in the context of LinkedIn, the most used professional social network in the United States. Entrepreneurs used LinkedIn to acquire social capital, such as mentors, potential collaborators, and fellow entrepreneurs. Furthermore, because there is a strong norm for the inclusion of a headshot photograph, race is very salient in the context of LinkedIn.
External Link(s)

Registration Citation

Citation
Hmaddi, Ouafaa and Alexander Lewis. 2026. "Activist homophily, activist signaling, and the acquisition of social capital by Black entrepreneurs: a field experiment." AEA RCT Registry. April 08. https://doi.org/10.1257/rct.12263-2.0
Experimental Details

Interventions

Intervention(s)
Intervention Start Date
2026-04-15
Intervention End Date
2026-06-29

Primary Outcomes

Primary Outcomes (end points)
Connection is coded 0 if the mentor declines the connection request and 1 if the mentor accepts the request.
Primary Outcomes (explanation)
Potential variables that would be constructed are based on any data we can collect on founders on LinkedIn and other archival data

Secondary Outcomes

Secondary Outcomes (end points)
In follow-up studies we are also sending a message with the connection request. Response to the message from the mentor is a potential secondary outcome to explore. A potential additional outcome would be to use AI and measure the tone or helpfulness of the reply across the two groups.
Secondary Outcomes (explanation)

Experimental Design

Experimental Design
A randomized experiment on requesting LinkedIn connections from entrepreneurs.
Experimental Design Details
Not available
Randomization Method
Randomization done in office by a computer using stata. We will upload the log file of the randomization code.

The updated log file for phase 2 will be uploaded as well.
Randomization Unit
We randomize at the founder level.
Was the treatment clustered?
Yes

Experiment Characteristics

Sample size: planned number of clusters
Phase I YC stratification: gender × followers × pro-bono signal × red state. Phase II stratification: gender × LinkedIn activity level × top university. Pro-bono signal is unavailable in the 2026 scrape. Red-state is excluded from stratification (missing for 31.3% of sample) and retained as a heterogeneity variable. LinkedIn activity replaces follower count as the activity-based variable and is available for 100% of the sample. Eight cells, minimum N = 109.
Sample size: planned number of observations
Phase I drew its YC sample from LinkedIn search results using self-reported affiliation (n = 2,921). Phase II uses a near-complete census from the official YC directory (raw N = 9,104; after Phase I exclusion and US restriction: 5,488 founders, 3,500 companies; randomized N = 5,476). This is a 1.9× increase over Phase I and eliminates the self-selection bias of the Phase I sampling frame.
Sample size (or number of clusters) by treatment arms
Eight cells, minimum N = 109.
Minimum detectable effect size for main outcomes (accounting for sample design and clustering)
Phase I YC baseline. The full Phase I YC sample (n = 2,686 with controls) produced a treatment coefficient of −0.009 (SE = 0.014, p > 0.10) — a null result — against a White profile acceptance rate of 17.5% (regression constant = 0.175***). The corresponding raw gap was 1.1 pp (White 17.4%, Black 16.4%, p = 0.44). The most relevant Phase I signal for Phase II is the pro-bono mentoring interaction: Treatment × Mentoring = −0.120** to −0.122**, indicating a gap of approximately 11–12 pp among founders who signaled selective engagement. This pattern — discrimination concentrating when founders make deliberate, higher-commitment decisions — is the direct Phase I precedent for H2. Phase II power calculations use the manuscript regression baseline of 17.5% for the simple connection condition and assume a 40–50% reduction (to ~10%) for the advice request condition based on the literature on commitment-level effects. Minimum detectable effects. With n = 1,369 per arm (α = 0.05, two-tailed, 80% power), MDEs are as follows. For H1, the pooled race main effect (n = 2,738 per race), MDE = 2.52 pp; power to detect a 2 pp gap is 60% and a 3 pp gap is 92%. For H1 (simple connection only, WS vs. BS, baseline ~17.5%), MDE = 4.1 pp two-sided; power to detect a 3 pp gap is 57% and a 5 pp gap is 96%. For H2, the race gap in the advice request condition (WA vs. BA, assumed baseline ~8.5%), MDE = 3.0 pp two-sided (2.65 pp one-sided); power to detect the expected 3 pp gap is 80%. H2 is thus the best-powered individual test in the design, consistent with the theoretical and Phase I pro-bono evidence that discrimination concentrates in selective, higher-commitment contexts. Power for H3 (DiD/interaction). Under the expected scenario (a 3 pp gap in advice requests and a 1.1 pp gap in simple connections) the expected DiD is 1.9 pp. Two-sided power for this DiD is approximately 19% (28% one-sided). Power reaches 40% at a 3 pp DiD, 63% at 4 pp, and 83% at 5 pp. The study would require a much larger sample to achieve 80% power for the expected 1.9 pp DiD which is not feasible as we used the full YC sample. We address this limitation through three design choices. First, ANCOVA with pre-treatment covariates (followers, activity score, top university, elite employer) reduces residual variance by an estimated R² of 10–18%. This meaningfully improves power for H2 (lowering the advice-request race gap MDE from 3.0 pp to 2.70–2.83 pp and raising H2 power from 80% to 84–87%) but yields only modest gains for H3, raising DiD power from 19% to approximately 22% two-sided. Second, H3 is tested one-sided given the unambiguous directional prediction and Phase I precedent (Treatment × Mentoring = −0.120**, p < 0.01), raising power for the expected 1.9 pp DiD from 19% to 28%. Third, H2 is designated primary and H3 secondary, so the study’s inferential burden falls on H2 where power is adequate. Informative null. If H2 is null, that result is substantially more informative than Phase I's null. Phase I could rule out gaps larger than approximately 3.6 pp in the YC network (a 20% relative effect at the 17.5% baseline). A null on H2 would rule out gaps larger than 3.0 pp in the advice request condition — a 35% relative effect at the ~8.5% advice-request baseline. Ruling out a 35% relative discrimination effect in a high-stakes context would constitute meaningful evidence that discrimination is not operating, directly addressing the AE's concern that Phase I's low-stakes context precluded conclusions about higher-stakes interactions.
Supporting Documents and Materials

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information
IRB

Institutional Review Boards (IRBs)

IRB Name
UTSA IRB
IRB Approval Date
2023-11-04
IRB Approval Number
FY22-23-155
Analysis Plan

There is information in this trial unavailable to the public. Use the button below to request access.

Request Information