Location Matters: An Examination of Trading Profits

By Harald Hau. 2001

609 citations recorded by the source corpus.

Subfields: Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/3010e6c9938a496abe700e3df05cf6f2f1c15a88

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Citations in the corpus

Drivers behind the monitoring effectiveness of global institutional investors: Evidence from earnings management (2016, background): “…than non-locals (see, e.g., Coval and Moskowitz (1999) for professional money managers, Giannini, Irvine, and Shu (2013) for individual investors, Lerner (1995) for venture capitalists, Hau (2001) for professional traders, Malloy (2005) for equity analysts, and Butler (2008) for investment banks).”
A note on foreigners' trading and price effects across firms (2004, background): “Hau (2001) reports that proprietary traders on the German stock market do better when they are geographically closer to Frankfurt.”
Portfolio Concentration and Performance of Institutional Investors Worldwide (2017, background): “In a cross-country study, Hau (2001) investigates trading profits earned on the German Security Exchange by 756 professional traders located in eight European countries.”
Do Foreigners Facilitate Information Transmission in Emerging Markets (2012, neutral): “better than foreign traders (Hau, 2001; Choe, Kho, and Stulz, 2005; Dvorak, 2005).”
Information Asymmetry and Asset Prices: Evidence from the China Foreign Share Discount (2008, background): “Although a few papers argue that domestic investors have a linguistic and cultural advantage (Br nnan and Cao (1997), Choe, Kho and Stulz (2001), and Hau (2001)), others argue that foreign investors have an informational advantage because they possess a significant amount of investment experience…”
Do Local Analysts Know More? A Cross-Country Study of the Performance of Local Analysts and Foreign Analysts (2008, positive): “Hau (2001) investigates trading data for professional traders and shows that local investors perform better than foreign traders.”
Distance, Lending Relationships and Competition (2005, neutral): “Ceteris paribus, Hauswald and Marquez (2000) derive a negative (positive) relationship between the loan rate and the distance between the borrower and the relationship (transactional) bank.”
Informed trading in the index option market: The case of KOSPI 200 options (2008, background): “…and Seasholes (2001), and Froot and Ramadorai (2008) ﬁnd evidence suggesting that foreigners have an information advantage over domestic investors, Hau (2001), Choe, Kho, and Stulz (2005), and Dvorak (2005) report the opposite results. to obtain news on local ﬁrms, a foreign investor might need…”
Home Bias in International Equity Portfolios: A Review (2007, methodology): “For example, Hau (2001) using German data, Dvorak (2005) using Indonesian data, and Choe, Kho and Stulz (2005) using Korean data, find that domestic investors realize higher profits than foreign investors.”
Geographic Dispersion and Stock Returns (2012, neutral): “…each other, and interpret their evidence as favoring the view that the trading pattern of local investors influences 3 Coval and Moskowitz (2001), Hau (2001), Ivković and Weisbenner (2005), Ivković, Sialm, and Weisbenner (2008), and Teo (2009) conclude that local investors have an…”
Global Private Information in International Equity Markets (2009, neutral): “This high frequency correlation is unlikely to be due to gradual market 2 For evidence that domestic investors perform better than foreigners, see Shukla and van Inwegen (1995), Hau (2001), Choe, Kho, and Stulz (2001), or Timmermann and Blake (2005).”
Emerging Market Mutual Fund Performance: Evidence for Poland (2011, neutral): “This is well documented by for instance Brennan and Cao (1997), Coval and Moskowitz (1999) and Hau (2001).”
The Geography of Hedge Funds (2009, background): “On the international front, Hau (2001) reports, using data on professional traders, that local traders outperform foreign traders in the German market.”
Melting Pot or Salad Bowl: Some Evidence from U.S. Investments Abroad (2008, positive): “Hau (2001) shows that non-German-speaking traders significantly underperform German-speaking traders when trading the 11 largest blue-chip German stocks.”