A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Do agglomeration economies affect the local comovement of stock returns? Evidence from China
Prior studies in finance have examined the comovement of stock returns of firms headquartered in the same location. One interpretation of the results is that local investors have a ‘local bias’ due to an information advantage on local firms. We propose that localised agglomeration economies affect the fundamentals of local firms, resulting in the local comovement of stock returns. Using data for China A-share listed firms from 1997 to 2007, we find evidence of the comovement of stock returns of Chinese firms headquartered in the same city. We find inconsistent evidence for the local bias theory. The comovement of the stock returns of firms headquartered in the same city is stronger when the agglomeration economies in the city are stronger, suggesting that localised agglomeration economies provide an alternative explanation of the comovement of stock returns.
Do agglomeration economies affect the local comovement of stock returns? Evidence from China
Prior studies in finance have examined the comovement of stock returns of firms headquartered in the same location. One interpretation of the results is that local investors have a ‘local bias’ due to an information advantage on local firms. We propose that localised agglomeration economies affect the fundamentals of local firms, resulting in the local comovement of stock returns. Using data for China A-share listed firms from 1997 to 2007, we find evidence of the comovement of stock returns of Chinese firms headquartered in the same city. We find inconsistent evidence for the local bias theory. The comovement of the stock returns of firms headquartered in the same city is stronger when the agglomeration economies in the city are stronger, suggesting that localised agglomeration economies provide an alternative explanation of the comovement of stock returns.
Do agglomeration economies affect the local comovement of stock returns? Evidence from China
Firth, Michael (author) / Fu, Shihe / Shan, Liwei
Urban studies ; 54
2017
Article (Journal)
English
The scope of agglomeration economies: Evidence from Catalonia
| Online Contents | 2009
| British Library Online Contents | 2003
How does industrial agglomeration affect firms’ energy consumption? Empirical evidence from China
| SAGE Publications | 2023
Disentangling agglomeration economies from selection under policy distortions in China
| Taylor & Francis Verlag | 2024