and

and (2001)

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by Andrew D. Henderson , Mary J. Benner

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Datum	Value	Source
TITLE	and	SVM HeaderParse 0.2
AUTHOR NAME	Andrew D. Henderson	SVM HeaderParse 0.2
AUTHOR AFFIL	McCombs School of Business; The University of Texas at Austin; CBA 4.202	SVM HeaderParse 0.2
AUTHOR ADDR	Austin, TX 78712	SVM HeaderParse 0.2
AUTHOR NAME	Mary J. Benner	SVM HeaderParse 0.2
AUTHOR AFFIL	The Wharton School; University of Pennsylvania	SVM HeaderParse 0.2
AUTHOR ADDR	2010 Steinberg Hall-Dietrich Hall; Philadelphia, PA 19104-6370	SVM HeaderParse 0.2
ABSTRACT	Despite much research, debate continues about the impact of risk taking on a firm’s future performance. Unlike prior studies, we propose that risk-return relationships evolve as firms age and learn, particularly in high-velocity settings where accumulated knowledge affects how firms respond to technological change. Discerning this requires three things absent from prior analyses: (1) studying an entire population; (2) modeling evolutionary processes; and (3) using separate models to capture how a firm’s gains and losses (i.e., its strong and weak performances) unfold across time. Using this framework, we found that (a) risk-return relationships generally evolved from positive to negative as firms aged; because (b) firms learned to avoid large losses at younger ages than they learned to sustain large gains; yet (c) the risk taking that followed below-aspiration performance moderated those effects such that major setbacks prompted large future gains and large future losses among older firms and downward spirals among younger ones. 1 Relationships between risk and return are central to our lives. In the hope of emotional or monetary rewards, some people take risks by climbing mountains, changing employers, or switching careers. Some executives take risks in pursuit of better pay and enhanced reputations, and some firms pursue risky strategies in a quest for higher sales and profits.	SVM HeaderParse 0.2
YEAR	2001	SVM HeaderParse 0.2
CITATIONS	82 found	ParsCit 1.0