Abstract

http://ssrn.com/abstract=1808123
 
 

References (45)



 
 

Citations (3)



 


 



Leveling the Playing Field: Financial Regulation and Disappearing Local Bias of Institutional 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 9, 2014


Abstract:     
This study examines the link between firms' information environment and the investment decisions of local institutional investors. The local bias and informational advantage of institutional investors around corporate headquarters decline sharply following the adoption of Regulation Fair Disclosure and the Sarbanes-Oxley Act. The decline in local ownership is more salient among firms whose information environment was more opaque before the regulatory changes. At the aggregate market level, the degree of informed trading attributed to local investors also declines. Similar patterns are observed among sell-side equity analysts. Overall, the evidence is consistent with regulatory changes curtailing geographical-based informational advantage.

Number of Pages in PDF File: 55

working papers series


Download This Paper

Date posted: April 13, 2011 ; Last revised: September 10, 2014

Suggested Citation

Bernile, Gennaro and Kumar, Alok and Sulaeman, Johan, Leveling the Playing Field: Financial Regulation and Disappearing Local Bias of Institutional Investors (September 9, 2014). Available at SSRN: http://ssrn.com/abstract=1808123 or http://dx.doi.org/10.2139/ssrn.1808123

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 (Contact Author)
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
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
Feedback to SSRN


Paper statistics
Abstract Views: 1,308
Downloads: 179
Download Rank: 97,969
References:  45
Citations:  3

© 2014 Social Science Electronic Publishing, Inc. All Rights Reserved.  FAQ   Terms of Use   Privacy Policy   Copyright   Contact Us
This page was processed by apollo8 in 0.328 seconds