Are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence

Business firms have always recognised the need for a view of the future and have used explicit forecasts in their decision making process. Forecasts of economic variables can be obtained directly from survey expectations. This study evaluates the rationality of economic forecasts made by rubber limi...

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Main Author: Habibullah, Muzafar Shah
Format: Article
Language:English
English
Published: FAO 1994
Subjects:
Online Access:http://psasir.upm.edu.my/id/eprint/8804/
http://psasir.upm.edu.my/id/eprint/8804/1/Are%20a%20rubber%20firm.pdf
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author Habibullah, Muzafar Shah
author_facet Habibullah, Muzafar Shah
author_sort Habibullah, Muzafar Shah
building UPM Institutional Repository
collection Online Access
description Business firms have always recognised the need for a view of the future and have used explicit forecasts in their decision making process. Forecasts of economic variables can be obtained directly from survey expectations. This study evaluates the rationality of economic forecasts made by rubber limited companies in a survey published in Business Expectations Survey of Limited Companies. Data on actual and forecast values of gross revenue, capital expenditure and employment are subjected to unbiasedness, and have no serial correlation, efficiency and orthogonality tests for rationality. Findings suggest that forecast values are unbiased predictors of actual values. Moreover, rubber firms in Malaysia were also found to be rational and utilised all available information efficiently when making forecasts
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publishDate 1994
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spelling upm-88042015-09-17T06:06:43Z http://psasir.upm.edu.my/id/eprint/8804/ Are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence Habibullah, Muzafar Shah Business firms have always recognised the need for a view of the future and have used explicit forecasts in their decision making process. Forecasts of economic variables can be obtained directly from survey expectations. This study evaluates the rationality of economic forecasts made by rubber limited companies in a survey published in Business Expectations Survey of Limited Companies. Data on actual and forecast values of gross revenue, capital expenditure and employment are subjected to unbiasedness, and have no serial correlation, efficiency and orthogonality tests for rationality. Findings suggest that forecast values are unbiased predictors of actual values. Moreover, rubber firms in Malaysia were also found to be rational and utilised all available information efficiently when making forecasts FAO 1994 Article PeerReviewed application/pdf en http://psasir.upm.edu.my/id/eprint/8804/1/Are%20a%20rubber%20firm.pdf Habibullah, Muzafar Shah (1994) Are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence. Journal of Natural Rubber Research, 9 (1). pp. 56-64. ISSN 0127-7065 http://agris.fao.org Capital movements English
spellingShingle Capital movements
Habibullah, Muzafar Shah
Are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence
title Are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence
title_full Are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence
title_fullStr Are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence
title_full_unstemmed Are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence
title_short Are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence
title_sort are a rubber firm's gross revenue, capital expenditure and employment forecasts rational? - an empirical evidence
topic Capital movements
url http://psasir.upm.edu.my/id/eprint/8804/
http://psasir.upm.edu.my/id/eprint/8804/
http://psasir.upm.edu.my/id/eprint/8804/1/Are%20a%20rubber%20firm.pdf