Why are U.S. Stocks More Volatile?

  title={Why are U.S. Stocks More Volatile?},
  author={S{\"o}hnke M. Bartram and Gregory W. Brown and Ren{\'e} Stulz},
  journal={International Corporate Finance eJournal},
U.S. stocks are more volatile than stocks of similar foreign firms. A firm's stock return volatility can be higher for reasons that contribute positively (good volatility) or negatively (bad volatility) to shareholder wealth and economic growth. We find that the volatility of U.S. firms is higher mostly because of good volatility. Specifically, stock volatility is higher in the United States because it increases with investor protection, stock market development, new patents, and firm-level… 

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