Why did individual stocks become more volatile

摘要: We investigate why individual stocks become more volatile over the 1976–2000 period, during which quarterly accounting data are available at firm level. On average, corporate earnings have deteriorated and their volatilities increased sample period. This is evident for newly listed than existing stocks. The stock return volatility negatively related to return‐on‐equity positively of in cross‐sections. upward trend average fully accounted by downward return‐on‐equity.