Zunino, Diego; Praag, Mirjam van; Dushnitsky, Gary - 2017
€™ past failure for investors' decisions. Our motivating insight is that failure can be due to bad luck, lack of skill or both …. Therefore, failure conveys ambiguous information about skill. We predict that investors will discount entrepreneurs that … experienced past failure. However, in the presence of a signal of skill, the magnitude of the failure discount is reduced. We test …