Title: Sales forecast rationality and small business reorganisation

Authors: Mikko Hakola

Addresses: Department of Accounting and Finance, University of Vaasa, Vaasa 65200, Finland

Abstract: This research examines the rationality of the sales forecasts made by entrepreneurs and administrators of 23 small reorganisation companies during legal reorganisation processes in Finland in 2008-2009. The findings are consistent with previous research, where small company entrepreneurs were optimistic and overconfident. The most important results are that the administrators' sales forecasts tend to be as optimistic and overconfident as the entrepreneurs' sales forecasts. These findings may give new perspective for academics in legal reorganisation research where the reasons for failure of legal reorganisation have been investigated for a long period without clear findings.

Keywords: forecast rationality; optimism; overconfidence; enterprise development; business reorganisation; small companies; sales forecasting; entrepreneurship; Finland; small firms.

DOI: 10.1504/IJMED.2011.044632

International Journal of Management and Enterprise Development, 2011 Vol.11 No.2/3/4, pp.85 - 108

Published online: 30 Apr 2015 *

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