Firm headquarters location, ownership structure, and stock return co-movements

Donghui Li, Li Liao, Yuanhang Luo and Xueyong Zhang

Pacific-Basin Finance Journal, 2014, vol. 30, issue C, 158-172

Abstract: This paper investigates the link between firm headquarters location and its stock return co-movements in a full sample of Chinese listed firms from 1999 to 2007. The empirical results show a significant stock return co-movement pattern for firms located in the same province. And both firm-level factors, such as firm size and ownership structure, and provincial-level factors, including GDP per capita and the number of firms in a province, are found to be influential to this pattern. Moreover, results from a subsample of firms listed in the Shenzhen Stock Exchange show a reduction of local co-movement when firms have better information quality.

Keywords: Local co-movements; Ownership Structure; Emerging markets (search for similar items in EconPapers)
JEL-codes: G30 G38 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:pacfin:v:30:y:2014:i:c:p:158-172

DOI: 10.1016/j.pacfin.2014.08.002

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