학술논문
PVGO and expected stock returns.
Document Type
Article
Author
Source
Subject
Language
ISSN
1936-8216
Abstract
The article explores the use of the present value of growth opportunities (PVGO) as a variable to forecast long-term stock market returns. It highlights the evidence supporting a negative relationship between PVGO and stock market returns, indicating that a high PVGO forecasts low returns, while a low PVGO forecasts high returns. The findings suggest that investors tend to overestimate future growth based on recent performance and leading to overvalued or undervalued stocks,.