MARC Record from Library of Congress

LEADER: 02064cam a22003377a 4500
001 2005618446
003 DLC
005 20050722130629.0
007 cr |||||||||||
008 050722s2005 mau sb 000 0 eng
010 $a 2005618446
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aHong, Harrison G.$q(Harrison Gregory)
245 14 $aThe only game in town$h[electronic resource] :$bstock-price consequences of local bias /$cHarrison Hong, Jeffrey D. Kubik, Jeremy C. Stein.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2005.
490 1 $aNBER working paper series ;$vworking paper 11488
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 7/22/2005.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"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. We test this proposition using data on U.S. Census regions and states, and find clear-cut support for it. Most of the variation in the ratio of interest comes from differences across regions in aggregate book value per capita. Regions with low population density--e.g., the Deep South--are home to relatively few firms per capita, which leads to higher stock prices via an "only-game-in-town" effect. This effect is especially pronounced for smaller, less visible firms, where the impact of location on stock prices is roughly 12 percent"--National Bureau of Economic Research web site.
650 0 $aStocks$xPrices.
650 0 $aRisk.
650 0 $aInterest.
650 0 $aIndustrial location.
700 1 $aKubik, Jeffrey D.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 11488.
856 40 $uhttp://papers.nber.org/papers/W11488