How Distance, Language, and Culture Influence Stockholdings and Trades
Year: 2001
Type: article
Abstract: This paper documents that investors are more likely to hold, buy, and sell the stocks of Finnish firms that are located close to the investor, that communicate in the investor's native tongue, and that have chief executives of the same cultural background. The influence of distance, language, and culture is less prominent among the most investment‐savvy institutions than among both households and less savvy institutions. Regression analysis indicates that the marginal effect of distance is less for firms that are more nationally known, for distances that exceed 100 kilometers, and for investors with more diversified portfolios.
Source: The Journal of Finance
Authors: Mark Grinblatt, Matti Keloharju
Institution: University of California, Los Angeles
Language: English
Subfield: Finance
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2120646818