One might expect companies that miss their earnings targets to slow down, temper expectations and work to maintain investors’ trust with more judicious forecasts. Many, however, double down instead, announcing even loftier goals for the next period. 

That’s according to a new study by researchers at Waseda University’s School of Business and Finance. The Tokyo-based research team analysed data from 3,273 publicly listed Japanese firms over a period of 12 years and found a consistent pattern: those that fell short of earnings targets often responded by setting even higher goals for the next period in an effort to restore investor confidence.

Perhaps more surprising than the tactic itself is the result. Firms that…