Testing the Rational Expectations Hypothesis on the Retail Trade Sector Using Survey Data from Malaysia

Puah, Chin Hong and Lee, Lucy Yun Chong and Mohamad, Jais (2011) Testing the Rational Expectations Hypothesis on the Retail Trade Sector Using Survey Data from Malaysia. Journal of International Business and Economics, 11 (4). pp. 214-218. ISSN 2374-2194

PDF
Testing.pdf
Download (35kB)

Official URL: http://jibe-net.com/

Abstract

The rational expectations hypothesis states that when people are expecting things to happen, using the available information, the predicted outcomes usually occur. This study utilized survey data provided by the Business Expectations Survey of Limited Companies to test whether forecasts of the Malaysian retail sector, based on gross revenue and capital expenditures, are rational. The empirical evidence illustrates that the decision-makers expectations in the retail sector are biased and too optimistic in forecasting gross revenue and capital expenditures.

Item Type:	Article
Uncontrolled Keywords:	UNIMAS, REH, Unbiasedness, Non-serial correlation, Weak-Form Efficiency
Subjects:	A General Works > AC Collections. Series. Collected works H Social Sciences > HB Economic Theory
Divisions:	Academic Faculties, Institutes and Centres > Faculty of Economics and Business Faculties, Institutes, Centres > Faculty of Economics and Business
Depositing User:	Karen Kornalius
Date Deposited:	24 Jun 2014 07:14
Last Modified:	23 Mar 2022 07:32
URI:	http://ir.unimas.my/id/eprint/3247

Actions (For repository members only: login required)

View Item