The influence of performance feedback frequency and affective commitment on the sunk cost effect

Autor: Kuo Chih Cheng, Der-Fa Chen, Chen Ho Wu, Shao Hsi Chung, Peng Kwang Chen
Rok vydání: 2020
Předmět:
Zdroj: Managerial and Decision Economics. 41:873-882
ISSN: 1099-1468
0143-6570
Popis: The purpose of this study is to explore how combined effect of feedback frequency of investment performance and manager's affective commitment on reduction of the sunk cost effect. To this end, we designed an experimental questionnaire to collect data from production managers of electronics manufacturing companies listed on Taiwanese stock markets and used a hierarchical regression model to examine the relationships among variables. The results from 336 samples showed that just considering performance feedback frequency or affective commitment does not necessarily reduce the sunk cost effect. Only high feedback frequency jointed with high affective commitment can suppress the willingness of manager to continue a disadvantageous investment project.
Databáze: OpenAIRE
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