Local bias in investor attention: Evidence from China's Internet stock message boards

Yuqin Huang (), Huiyan Qiu and Zhiguo Wu

Journal of Empirical Finance, 2016, vol. 38, issue PA, 338-354

Abstract: In contrast to studies that focus on investment accounts, this study examines local bias in investor attention by analyzing messages posted by investors on China's Internet stock message boards. We find that individual investors pay more attention to stocks of local companies than to those of nonlocal companies. Local bias is particularly strong in underdeveloped regions, toward large, non-CSI 300, and low-turnover stocks and toward stocks with names that indicate their localities. The marginal effect of local bias is also considerably strong for distances within 500km. (G10; G11; G14; G15).

Keywords: Local bias; Limited attention; Internet stock message boards (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (59)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:empfin:v:38:y:2016:i:pa:p:338-354

DOI: 10.1016/j.jempfin.2016.07.007

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