Work

Location, Location, Location: Senate Trading and Seat Proximity

Year: 2026

Type: article

Abstract: Using the distance between two Senators’ desks to capture the proclivity to share information, we find that when two Senators sit closer together in the Senate Chamber, they are more likely to trade stocks in the same industry and earn larger returns, especially when they belong to the same political party. This association varies with Senators’ information sources and power and the scrutiny they face. We perform multiple identification tests to support our inference that Senators share private trading information gleaned from their positions in Congress. Moreover, we provide the first evidence on the career benefits associated with sharing information.

Source: Journal of Financial and Quantitative Analysis

DOI: 10.1017/s0022109026103299

Authors: Dane M. Christensen, Hengda Jin, Beverly R. Walther, Laura A. Wellman

Institutions: University of Oregon, Texas A&M University, Northwestern University

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

Open Access status: hybrid

Estimated APC paid: $3,550

OpenAlex ID: W7169861480

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