We examine the economic content of accruals and investment and test whether they are related to nonlinear equity value and asymmetric returns arising from firm growth. We confirm that current accruals mainly reflect capital investment commitment to assets in place arising from past growth,...

We examine the informational efficiency of market ambiguity in predicting market excess returns and the equity premium internationally. Empirical results show a strong predictive ability of option-implied, and sentiment-based, ambiguity for U.S. stock market returns for up to three years. We...