Does corporate headquarters location matter for stock returns?

• 成果类型: Article
• 署名作者: Pirinsky, Christo; Wang, Qinghai
• 署名单位: Texas A&M University System; Texas A&M University College Station; Mays Business School; University of Wisconsin System; University of Wisconsin Milwaukee
• 刊物名称: JOURNAL OF FINANCE
• ISSN/ISSBN: 0022-1082
• DOI: 10.1111/j.1540-6261.2006.00895.x
• 发表日期: 2006
• 页码: 1991-2015
• 关键词: cross-section; HOME BIAS; geography

摘要

We document strong comovement in the stock returns of firms headquartered in the same geographic area. Moreover, stocks of companies that change their headquarters location experience a decrease in their comovement with stocks from the old location and an increase in their comovement with stocks from the new location. The local comovement of stock returns is not explained by economic fundamentals and is stronger for smaller firms with more individual investors and in regions with less financially sophisticated residents. We argue that price formation in equity markets has a significant geographic component linked to the trading patterns of local residents.