“…This includes Liu and Zhang (2017) who link momentum with future growth, while George, Hwang, and Li (2018) note the ability of the 52-week high price ratio to predict future returns could arise from its ability to predict future profit. Byun, Goh, and Kim (2020) find a similar result, while Kyosev et al (2020) link accounting quality and future profit that enables the former to predict future market returns. These empirical relations suggest that the IVOL effect links with future profitability and, consequently, may be the channel through which IVOL predicts future returns.…”