Local Bias in Investor Attention: Evidence from China's Internet Stock Message Boards

By Yuqin Huang, Huiyan Qiu, Zhiguo Wu. 2016

151 citations recorded by the source corpus.

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).

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/3f58eba0ddbaee5f006b1cab013ddd8e27b09206

How researchers see this paper

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In Accounting

1. Guangda Ouyang
2. Fenghua Wen
3. Longhao Xu
4. Gang Kou

In Economics and Econometrics

1. Guangda Ouyang
2. Fenghua Wen
3. Longhao Xu
4. Gang Kou

In Finance

1. Guangda Ouyang
2. Fenghua Wen
3. Longhao Xu
4. Gang Kou

Citations in the corpus

• Retail investor attention and stock price crash risk: Evidence from China (2019, background): “The numbers of its users and page views are the largest among all retail investor social platforms in the China stock market (Huang et al., 2016).”