Leveling the Playing Field: Financial Regulation and Disappearing Local Bias of Institutional Investors

• Main Authors: BERNILE, Gennaro, Kumar, Alok, Sulaeman, Johan
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2014
• Subjects: disclosure regulation; Reg FD; Sarbanes-Oxley; local bias; local performance; institutionalinvestors; equity analysts; Business
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/4525; https://ink.library.smu.edu.sg/context/lkcsb_research/article/5524/viewcontent/levelingtheplayingfield.pdf
• Institution: Singapore Management University

This study examines how changes in firms’ information environment affect local agents. We show that local bias and informational advantage of institutional investors and equity analysts located around corporate headquarters decline sharply following the adoption of Regulation Fair Disclosure and Sar...