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A large body of research suggests that affect- moods, feelings and emotions -plays a fundamental role in cognition, motivation, task performance, and self-regulation. In this paper, using longitudinal data from the Household, Income and Labor Dynamics in Australia (HILDA) survey from 2001 to 2014, we present three empirical tests for the relationship between positive and negative affect and entrepreneurs entry and exit decisions. We find that people who tend to experience more frequently negative emotions are more likely to start a business, but also significantly more likely to quit. Positive affectivity, on the other hand, decreases the probability of becoming self-employed but also substantially decreases the probability of quitting. One possible explanation is that people who experience negative emotions might be more inclined to seek entrepreneurship as a strategy to cope with unhappiness. Positive affectivity, on the other hand, makes people more creative, imaginative, cooperative, and less self-centered, which can facilitate opportunity recognition, acquisition of essential resources, and help cope with higher levels of stress, eventually leading to higher business success in the long-run. [ABSTRACT FROM AUTHOR]

Building on cognitive tuning theory, we test a model connecting employees' positive and negative affect and creative self-efficacy with supervisor-rated creative performance. Based on data obtained from 459 subordinate-supervisor dyads from a large organization in China, we demonstrate that creative self-efficacy has a positive influence on employees' creativity when employees experience both low levels of positive affect and high levels of negative affect. Building on these results, we call for more research examining the interplay between affective and cognitive influences on employees' creative performance. [ABSTRACT FROM AUTHOR]