Abstract

http://ssrn.com/abstract=2096132
 


 



Derivatives Use and Analysts’ Earnings Forecast Accuracy


Salma Mefteh


Lunam University - Ecole Superieure Des Sciences Commerciales D'Angers (ESSCA)

Sabri Boubaker


Champagne School of Management (Groupe Esc Troyes); Institut de Recherche en Gestion (Université Paris Est Créteil)

Florence Labégorre


University 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 Series


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Date posted: June 29, 2012  

Suggested Citation

Mefteh, Salma and Boubaker, Sabri and Labégorre, Florence, Derivatives Use and Analysts’ Earnings Forecast Accuracy (April 1, 2012). Frontiers in Finance and Economics, Vol. 9, No. 1, 51-86. Available at SSRN: http://ssrn.com/abstract=2096132

Contact Information

Salma Mefteh (Contact Author)
Lunam University - Ecole Superieure Des Sciences Commerciales D'Angers (ESSCA) ( email )
1 Rue Lakanal
Angers Cedex, 49003
France
Sabri Boubaker
Champagne School of Management (Groupe Esc Troyes) ( email )
217 avenue Pierre Brossolette BP 710
Troyes, Troyes 10002
France
+33 3 25 71 22 31 (Phone)
+33 3 25 49 22 17 (Fax)
HOME PAGE: http://www.groupe-esc-troyes.com
Institut de Recherche en Gestion (Université Paris Est Créteil) ( email )
61 Avenue du General de Gaulle
94010 Creteil
France
HOME PAGE: http://www.irg.u-pec.fr/enseignant.php?num=58
Florence Labégorre
University of Lille I - Institute of Business Administration ( email )
France
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