Abstract

http://ssrn.com/abstract=1711653
 
 

References (26)



 
 

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Home Away From Home: Geography of Information and Local Investors


Gennaro Bernile


Singapore Management University - Lee Kong Chian School of Business

Alok Kumar


University of Miami - School of Business Administration

Johan Sulaeman


Southern Methodist University (SMU) - Edwin L. Cox School of Business

September 11, 2013

26th Australasian Finance and Banking Conference 2013
AFA 2012 Chicago Meetings Paper
14th Annual Conference of Financial Economics and Accounting 2011

Abstract:     
We develop a 10K-based measure of spatial variation in the availability of value-relevant information that reflects the multi-dimensional nature of firm location. Spatially distributed information generates location-based information asymmetries that affect institutional portfolio decisions and performance. Institutions overweigh firms with greater local economic exposure and earn superior returns on corresponding trades, even for firms not headquartered locally. These patterns are stronger among harder-to-value stocks. Consistent with local informational advantage, local investor performance increases with the local exposure of individual stock holdings and her portfolio as a whole, and more so when her portfolio is more heavily tilted toward local stocks.

Number of Pages in PDF File: 69

Keywords: Multi-Dimensional Firm Location, Information Asymmetry, Local Informational Advantage

JEL Classification: D82, G11, G12, G20

working papers series


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Date posted: November 21, 2010 ; Last revised: November 12, 2013

Suggested Citation

Bernile, Gennaro and Kumar, Alok and Sulaeman, Johan, Home Away From Home: Geography of Information and Local Investors (September 11, 2013). 26th Australasian Finance and Banking Conference 2013; AFA 2012 Chicago Meetings Paper; 14th Annual Conference of Financial Economics and Accounting 2011. Available at SSRN: http://ssrn.com/abstract=1711653 or http://dx.doi.org/10.2139/ssrn.1711653

Contact Information

Gennaro Bernile
Singapore Management University - Lee Kong Chian School of Business ( email )
50 Stamford Road
Level 4
Singapore, 178899
Singapore
+65-68085478 (Phone)

Alok Kumar
University of Miami - School of Business Administration ( email )
514 Jenkins Building
Department of Finance
Coral Gables, FL 33124-6552
United States
305-284-1882 (Phone)
HOME PAGE: http://moya.bus.miami.edu/~akumar
Johan Sulaeman (Contact Author)
Southern Methodist University (SMU) - Edwin L. Cox School of Business ( email )
Dallas, TX 75225
United States
214-768-8284 (Phone)
HOME PAGE: http://jsulaeman.cox.smu.edu
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References:  26
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