Nikolay Osadchiy - Emory University, Goizueta Business School. Atlanta, GA, US

Nikolay Osadchiy Nikolay Osadchiy

Associate Professor of Information Systems & Operations Management | Emory University, Goizueta Business School

Atlanta, GA, US

Forecasting sales using financial stock market data

Forecasting sales using financial stock market data 2018-07-31
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Nikolay Osadchiy

Firms use many kinds of data for forecasting future sales—one of the key activities in the management of a business—and combine various methods in order to utilize different types of information. A recent study by Nikolay Osadchiy, assistant professor of information systems and operations management; Vishal Gaur (Cornell); and Sridhar Seshadri (UT Austin) focuses on financial stock market data in developing a new methodology for firm-level sales forecasting, testing it against standard benchmarks such as forecasts from equity analysts and time-series methods. Applying their method to the forecast of total annual sales for US public retail firms, the researchers find their market-based approach achieves an average 15 percent reduction in forecasting error compared with more typical forecasting methods. Their model, they write, can also be applied to hedging operational risk with financial instruments.


Sales Forecasting with Financial Indicators and Experts' Input

We present a method for forecasting sales using financial market information and test this method on annual data for US public retailers.