Geographic dispersion and stock returns

• 成果类型: Article
• 署名作者: Garcia, Diego; Norli, Oyvind
• 署名单位: University of North Carolina; University of North Carolina Chapel Hill; BI Norwegian Business School
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2012.06.007
• 发表日期: 2012
• 页码: 547-565
• 关键词: Geography; Geographic dispersion; location; Local; stock returns

摘要

This paper shows that stocks of truly local firms have returns that exceed the return on stocks of geographically dispersed firms by 70 basis points per month. By extracting state name counts from annual reports filed with the Securities and Exchange Commission (SEC) on Form 10-K, we distinguish firms with business operations in only a few states from firms with operations in multiple states. Our findings are consistent with the view that lower investor recognition for local firms results in higher stock returns to compensate investors for insufficient diversification. Published by Elsevier B.V.