Feedback persistence matters! Uncovering the varying effects of success and failure persistence on firm risk-taking
研究提出成功和失败的持续性（而非单次结果）会非线性地影响企业风险承担，基于印度制造业数据发现风险承担先随成功持续而下降、后上升，失败持续则相反，对理解企业战略决策有参考价值。
The motivational effects of success and failure on firm risk-taking have been widely documented in research rooted in a behavioral theory of the firm, with the resultant body of work yielding divergent theoretical predictions and empirical findings. Despite scholarly progress, recent studies ruminate that envisioning success and failure through the lens of realized performance and aspiration foregoes its temporal considerations and takes a narrow view of its information content. Emphasizing the temporality of performance feedback, this study proposes success and failure persistence as reliable indicators of firm performance. In particular, we propose a curvilinear relationship between success (failure) persistence and firm risk-taking, such that risk-taking by firms initially decreases (increases) and then increases (decreases) with an increase in success (failure) persistence. Using a data set of publicly listed Indian manufacturing firms from 1995 to 2018, we find robust support for the above-proposed curvilinear relationships. Our findings highlight the nonlinear, asymmetric influences of success and failure persistence on firm risk-taking and disclose the presence of strategic momentum effects. This study contributes to the research on a behavioral theory of the firm and performance feedback theory and offers managerial guideposts for handling success and failure.