Creative Destruction, Stock Return Volatility, and the Number of Listed Firms

Söhnke Bartram, Gregory W. Brown and René M. Stulz

No 32568, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: Average idiosyncratic volatility and firm idiosyncratic volatility increase with the number of listed firms. Average industry idiosyncratic volatility increases with the number of listed firms in the industry. We ex-plain the relation between idiosyncratic volatility and the number of listed firms through Schumpeterian creative destruction. We show that Schumpeterian creative destruction increases as the number of listed firms increases. However, there is no consistent evidence of an incremental effect of the number of non-listed firms on idiosyncratic volatility either in the aggregate or at the industry level, suggesting that listed firms play a unique role in the dynamism of the economy.

JEL-codes: G10 G11 G12 (search for similar items in EconPapers)
Date: 2024-06
New Economics Papers: this item is included in nep-bec, nep-fdg, nep-rmg and nep-sbm
Note: AP CF
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.nber.org/papers/w32568.pdf (application/pdf)
Access to the full text is generally limited to series subscribers, however if the top level domain of the client browser is in a developing country or transition economy free access is provided. More information about subscriptions and free access is available at http://www.nber.org/wwphelp.html. Free access is also available to older working papers.

Related works:
Working Paper: Creative Destruction, Stock Return Volatility, and the Number of Listed Firms (2024)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:32568

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w32568
The price is Paper copy available by mail.

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by ().