Financial Forecasting, Risk-taking and Venture Performance

This conceptual paper develops a model based on prospect theory that explores how the effort entrepreneurs expend developing financial forecasts may influence risk-taking and performance. It proposes more they forecasts, likely will be to use results of as reference points against which evaluate their ventures’ future Furthermore, we propose leads optimistic are less adjusted. Our suggests these factors related subsequent by entrepreneurs. The further that, for entrepreneurs, relationship between performance is moderated level utility entrepreneur experiences from venture