|
|
|
|
||||
|
||||
Derivatives Use and Analysts’ Earnings Forecast AccuracySalma MeftehEcole Superieure Des Sciences Commerciales D'Angers (ESSCA) Sabri BoubakerChampagne School of Management (Groupe Esc Troyes); Institut de Recherche en Gestion (Université Paris Est Créteil ) Florence LabégorreUniversity of Lille I - Institute of Business Administration April 1, 2012 Frontiers in Finance and Economics, Vol. 9, No. 1, 51-86 Abstract: This paper examines whether the use of derivatives improves firms’ information environment, which is a relatively under-investigated research area in risk management literature. Using a sample of French non-financial listed firms, we show that firms which use derivatives enjoy high levels of forecast accuracy relative to firms that do not. This result is in accord with the arguments developed by DeMarzo and Duffie (1995) and Breeden and Vishwanathan (1998) suggesting that hedging is an important means of reducing information asymmetry.
Number of Pages in PDF File: 36 Keywords: Hedging, Derivatives use, Analysts’ forecasts, France JEL Classification: F31, G32 Accepted Paper SeriesDate posted: June 29, 2012Suggested CitationContact Information
|
|
|||||||||||||||||||||||
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
FAQ
Terms of Use
Privacy Policy
Copyright
This page was processed by apollo7 in 0.375 seconds
