resulting volatility can induce risk-averse transactors who face transaction costs to desert these markets altogether. Thus … thinness and the consequent price volatility may become joint self-perpetuating features of an equity market, whatever the … volatility of asset fundamentals. If, however, appropriate incentive schemes are adopted to encourage entry of additional …

have a significant and potentially long-lasting effect on stock market returns, and also tend to reduce market volatility …. Speeches and interviews, in contrast, have little effect on market returns and tend to increase volatility during tranquil …