Information Quality, Growth Options, and Average Future Stock Returns

• 成果类型: Article
• 署名作者: Lyle, Matthew R.
• 署名单位: Northwestern University
• 刊物名称: ACCOUNTING REVIEW
• ISSN/ISSBN: 0001-4826
• DOI: 10.2308/accr-52076
• 发表日期: 2019
• 页码: 271-298
• 关键词: cross-section; Accruals quality; IMPLIED COST; corporate-debt; earnings; RISK; equity; asymmetry; valuation; uncertainty

摘要

This study finds that the association between future stock returns and information quality depends on how option-like is the firm's equity. Firms that have more growth options are more option-like. The association between future stock returns and information quality is negative (positive) for those firms with equity that is least (most) option-like. These results are consistent with traditional asset pricing theory and are robust to numerous empirical specifications. Collectively, these findings offer a theoretically based and empirically supported explanation for why prior studies that do not condition on the option-like nature of equity have documented either a positive or no association between information quality and future average stock returns.