Neighbors matter : Geographical distance and trade timing in the stock market
Baltakys, Kȩstutis; Baltakienė, Margarita; Kärkkäinen, Hannu; Kanniainen, Juho (2018)
Baltakys, Kȩstutis
Baltakienė, Margarita
Kärkkäinen, Hannu
Kanniainen, Juho
2018
Finance Research Letters
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:tty-201812212895
https://urn.fi/URN:NBN:fi:tty-201812212895
Kuvaus
Peer reviewed
Tiivistelmä
The starting point of this paper is that neighboring investors may talk to each other sharing information about their transactions in stock markets, leading to similar trading behavior. We find that pairwise trade timing similarities between investor pairs are negatively associated to geographical distance between corresponding investor pairs. This suggests that local information transfer channels between neighboring individual investors are used in decision making. We also observe that differences in age and language moderate this association. The analysis is conducted using investor level data from different regions of Finland.
Kokoelmat
- TUNICRIS-julkaisut [16740]