Rountree, Brian; Weston, James P.; Allayannis, George - In: Journal of Financial Economics 90 (2008) 3, pp. 237-251
This paper presents empirical evidence that cash-flow volatility is negatively valued by investors. The magnitude of the effect is substantial with a 1% increase in cash-flow volatility, resulting in approximately a 0.15% decrease in firm value. We show that this increase, however, is not...
