Are a rubber firms gross revenue capital expenditure and employment forecasts rational An empirical evidence.

Muzafar Shah Habibullah, . Are a rubber firms gross revenue capital expenditure and employment forecasts rational An empirical evidence. pp. 56-64. ISSN 0127-7065

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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Abstract

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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Item Type:	Article
AGROVOC Term:	Rubber industry
AGROVOC Term:	Employment
AGROVOC Term:	Capital
AGROVOC Term:	Expenditure
AGROVOC Term:	Yield forecasting
AGROVOC Term:	Decision making
AGROVOC Term:	Economic analysis
Geographical Term:	Malaysia
Depositing User:	Ms. Suzila Mohamad Kasim
Last Modified:	28 Apr 2025 03:58
URI:	http://webagris.upm.edu.my/id/eprint/23404

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