The only game in town: Stock-price consequences of local bias

Theory suggests that, in the presence of local bias, the price of a stock should be decreasing in the ratio of the aggregate book value of firms in its region to the aggregate risk tolerance of investors in its region. Using data on U.S. states and Census regions, we find clear-cut support for this...

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Veröffentlicht in:	Journal of financial economics 2008-10, Vol.90 (1), p.20-37
Hauptverfasser:	Hong, Harrison, Kubik, Jeffrey D., Stein, Jeremy C.
Format:	Artikel
Sprache:	eng
Schlagworte:	Asset valuation Bias Book value Financial ratios Local bias Local bias Segmented markets Local economy Market structure Regional disparities Regional stocks Risk Segmented markets Stock prices Studies U.S.A
Online-Zugang:	Volltext
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