• 1 Introduction
  • 2 Theoretical Background
  • 3 Data and Descriptive Statistics
  • 3.1 The Data
  • 3.2 Computing Firm Level Volatility
  • 4 Computing Idiosyncratic Firm Level Volatility
  • 5 Decomposing and Explaining Firm Level Volatility
  • 5.1 First-Stage Regression: Decomposing Firm Level Volatility
  • 5.2 Second-Stage Regressions: Explaining the Volatility of Sales Growth
  • 5.3 Robustness and Selection Issues
  • 6 Summary and Conclusions
  • 7 References
  • 8 Data Appendix