Investment in a Smaller World: The Implications of Air Travel for Investors and Firms
成果类型：
Article
署名作者：
Da, Zhi; Gurun, Umit G.; Li, Bin; Warachka, Mitch
署名单位：
University of Notre Dame; University of Texas System; University of Texas Dallas; University of Oklahoma System; University of Oklahoma - Norman; Chapman University System; Chapman University
刊物名称：
MANAGEMENT SCIENCE
ISSN/ISSBN：
0025-1909
DOI：
10.1287/mnsc.2019.3452
发表日期：
2021
页码：
417-435
关键词：
摘要：
A large literature reports that proximity influences investment. We extend the measurement of proximity beyond distance and report that air travel reduces local investment bias. This result is confirmed using the initiation of connecting flights through recently opened air hubs because investment at destinations served by these connecting flights increases after, not before, their initiation. Air travel also broadens the investor base of firms and lowers their cost of equity by approximately 1%. Overall, air travel improves the diversification of investor portfolios and lowers the cost of equity for firms.
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