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

Respectively, Professor of Finance, University of Warwick, and CEPR, Weatherspoon Distinguished Professor of Finance, Kenan-Flagler Business School, The University of North Carolina at Chapel Hill, and Everett D. Reese Chair of Banking and Monetary Economics, Fisher College of Business, The Ohio State University, NBER, and ECGI. The authors appreciate helpful comments from Murillo Campello, Ines Chaieb, Stijn van Nieuwerburgh, Leandro Sanz, participants at the 2023 GEA conference, and seminar participants at Durham University, Heriot-Watt University, Poznan University of Economics and Business, the University of Cincinnati, and the University of North Carolina. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.