Has local informational advantage disappeared?

• Main Authors: BERNILE, Gennaro, KUMAR, Alok, SULAEMAN, Johan, WANG, Qin (Emma)
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2016
• Subjects: Institutional investors; equity analysts; local bias; informational advantage; Finance and Financial Management
• Online Access: https://ink.library.smu.edu.sg/lkcsb_research/5218; https://ink.library.smu.edu.sg/context/lkcsb_research/article/6217/viewcontent/SSRN_id2772127.pdf
• Institution: Singapore Management University

This study examines how changes in the information environment affect the informational advantage of geographically proximate agents. We find that the long-term advantage of local agents disappeared at the turn of the millennium. This is accompanied by the reduction in local bias of institutional in...