Do well managed firms make better forecasts?
Nicholas Bloom,
Takafumi Kawakubo,
Charlotte Meng,
Paul Mizen,
Rebecca Riley,
Tatsuro Senga and
John van Reenen
CEP Discussion Papers from Centre for Economic Performance, LSE
Abstract:
We link a new UK management survey covering 8,000 firms to panel data on productivity in manufacturing and services. There is a large variation in management practices, which are highly correlated with productivity, profitability and size. Uniquely, the survey collects firms' micro forecasts of their own sales and also macro forecasts of GDP. We find that better managed firms make more accurate micro and macro forecasts, even after controlling for their size, age, industry and many other factors. We also show better managed firms appear aware that their forecasts are more accurate, with lower subjective uncertainty around central values. These stylized facts suggest that one reason for the superior performance of better managed firms is that they knowingly make more accurate forecasts, enabling them to make superior operational and strategic choices.
Keywords: management; productivity; expectations; forecasting (search for similar items in EconPapers)
Date: 2022-01-05
New Economics Papers: this item is included in nep-bec and nep-hrm
References: View references in EconPapers View complete reference list from CitEc
Citations:
Downloads: (external link)
https://cep.lse.ac.uk/pubs/download/dp1821.pdf (application/pdf)
Related works:
Working Paper: Do well managed firms make better forecasts? (2022)
Working Paper: Do well managed firms make better forecasts? (2022) 
Working Paper: Do Well Managed Firms Make Better Forecasts? (2021) 
Working Paper: Do Well Managed Firms Make Better Forecasts? (2021) 
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:cep:cepdps:dp1821
Access Statistics for this paper
More papers in CEP Discussion Papers from Centre for Economic Performance, LSE
Bibliographic data for series maintained by ().