Performance feedback is a core element of the Behavioral Theory of the Firm (BTOF). Prior studies on performance feedback mainly infer firms’ aspirations based on various aspiration models. However, it is unclear which model reflects the actual process of aspiration adjustment. We address this issue by manually collecting data on firms’ aspirations from Chinese listed companies from 2007 to 2019 and validating seven commonly used aspiration models. We revealed that the assumptions of existing aspiration models differ significantly from actual aspiration-setting practices. Drawing on the latest research from the attention-based View, this study proposes an adjust-switching model: when performance falls below the social reference goal, aspirations are set based solely on self-aspirations, whereas when performance exceeds it, aspirations are set based on both self-aspirations and social aspirations. This adjust-switch model is supported when firms adopt conservative, stepwise, and ambitious social reference strategies. The research contributes to the literature on performance feedback and the BTOF.