| dc.description.abstract | This research investigates the possible relationship between the stages of a firm's life cycle and idiosyncratic volatility (IVOL). As a corporation expands, idiosyncratic volatility is expected to fluctuate. This is because business performance varies over time, and this variation has a substantial influence on the level of uncertainty in future stock returns and cash flows. When comparing the “shake-out” stage to the “introduction” and “decline” stages, the data demonstrates that the “introduction” and “decline” phases have far more idiosyncratic volatility. However, the number drops dramatically during the maturation and “growth” stages. Furthermore, the data imply that cash flow volatility has a variety of effects on idiosyncratic behavior. | en_US |
