The Determinants of Profit Forecast by Tunisian Companies

Abstract

This paper aims to examine the impact of the determinants of profit forecast by companies on the level of detail of information published by the leaders. It analyzes the contribution of publications to reduce information asymmetry between managers and investors. From a sample of 50 companies listed in the stock exchange of Tunis in 2010, our results show that the most successful companies are able to provide detailed and reliable profit forecasts better than others ones in order to maximize their financial value. They also show that companies belonging to high-tech sectors provide more detailed and credible than others. These results suggest that the publication of reliable information is an important determinant of investor behavior.