We examine whether regional social capital has any impact on idiosyncratic return volatility. Using US data, we find that firms headquartered in high social capital counties exhibit significantly lower idiosyncratic return volatility. This effect is more pronounced in the presence of financial...

This paper investigates the association between idiosyncratic volatility and firm life cycle stages. Since firm performance and availability of information vary across life cycle stages, and such variation affects uncertainty about future cash flows and stock returns, we argue that idiosyncratic...

This paper examines empirically the effect of business cycle on fundamental and information uncertainties and whether this relationship accentuates or attenuates idiosyncratic stock volatility. Fundamental uncertainty refers to the uncertainty about firms' future cash flows and earnings, while...

This study examines the association between financial statement comparability and idiosyncratic return volatility. A greater degree of comparability lowers information acquisition costs, reduces the uncertainties associated with performance evaluation, and increases the overall quantity and...

Purpose: Higher real earnings management (REM) reduces financial reporting quality and increases the uncertainty of future cash flows and profitability among investors. We assert that REM induced noise increases idiosyncratic return volatility (IVOL) and aim to examine the association between...