Over-optimism Bias in Market Analysts' Forecasts: The Case of the Australian Dollar

Suri Rajapakse and Mahinda Siriwardana ()

Journal of the Asia Pacific Economy, 2007, vol. 12, issue 1, 103-113

Abstract: Accurate forecasting of future exchange rates are of vital importance for firms and portfolio managers in the management of risk in international transactions. These enterprises frequently resort to the forecasts of market analysts as a viable source. In the meantime, market analysts' forecasts of the Australian dollar seem to be driven by over-optimism bias similar to that found by Mande et al. (2003) with respect to US and Japanese earnings forecasts. An examination of analysts' short-term forecasts of the Australian dollar reveals that they are subject to substantial over-optimism bias. The present research is an attempt to establish such empirical evidence of over-optimism bias in the context of Australian dollar forecasts. The findings of the research will be useful to business and government in the management of international transactions.

Date: 2007
References: View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://hdl.handle.net/10.1080/13547860601083769 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:rjapxx:v:12:y:2007:i:1:p:103-113

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/rjap20

DOI: 10.1080/13547860601083769

Access Statistics for this article

Journal of the Asia Pacific Economy is currently edited by Leong Liew

More articles in Journal of the Asia Pacific Economy from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().