products and services to informationally opaque customers, their ability to diversify credit and liquidity risk, and how they … liabilities to reduce the probability of bank runs. These aspects of banking affect a bankś choice of risk vs. expected return …, which, in turn, affects bank performance. Banks have an incentive to reduce risk to protect the valuable charter from …

"We estimate plant--level idiosyncratic risk in the U.S. manufacturing sector. Our proxy for risk is the volatility of … extent of cross-sectoral variation in idiosyncratic risk is remarkable. Plants in the most volatile sector are subject to at … least three times as much uncertainty as plants in the least volatile. Our evidence indicates that idiosyncratic risk is …

idiosyncratic risk is higher in industries where the extent of creative destruction is likely to be greater …