%0 Journal Article
%T Do Firms Learn More From Small or Big Successes and Failures? A Test of the Outcome
%A Jun Xia
%A Yan Gong
%A Yu Zhang
%J Journal of Management
%@ 1557-1211
%D 2019
%R 10.1177/0149206316687641
%X It has been recognized that previous experiences can provide different types of feedback. However, it has not been systematically explored why firms are more likely to learn effectively from certain types of experience than others. From a feedback-based learning perspective, we argue that it is useful not only to focus on feedback valence (success or failure experiences) but also to examine feedback saliency (the magnitude of the experience¡¯s influence). Based on a sample of acquisitions by U.S. firms, our results indicate that a firm¡¯s success experience drives up the premium that it pays for a subsequent acquisition, whereas a failure experience reduces this subsequent premium. Moreover, we find that the magnitude of the effects of the four types of experiences¡ªsmall failure, big failure, small success, and big success¡ªdoes not follow a symmetrical pattern of inverse effects
%K acquisition premium
%K acquisition experience
%K feedback valence
%K feedback saliency
%K feedback-based learning
%U https://journals.sagepub.com/doi/full/10.1177/0149206316687641