How Distance, Language, and Culture Influence Stockholdings and Trades

By Mark Grinblatt, Matti Keloharju. 2001

1,682 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/b0de341a42b2bc50febbad074e55793cfd8720da

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Citations in the corpus

Up Close and Personal: Investor Sophistication and the Disposition Effect (2006, result): “Our analysis strongly confirms the previous finding (Odean 1998, Grinblatt and Keloharju 2001b) that individual investors, on average, exhibit the disposition effect.”
Do foreign investors exhibit a corporate governance disadvantage? An information asymmetry perspective (2010, neutral): “Grinblatt and Keloharju (2001) show that Finnish investors whose native language is Swedish are more likely to buy stocks of companies that have Swedish-speaking CEOs than are Finnish investors whose native language is Finnish.”
Media Makes Momentum (2014, background): “…line of research, many recent finance papers have demonstrated that in- vestors, both retail and professional, exhibit a strong preference for local stocks (e.g. Coval and Moskowitz (1999), Coval and Moskowitz (2001), Grinblatt and Keloharju (2001), Huber- man (2001), Seasholes and Zhu (2010)).”
Does concrete language in disclosures increase willingness to invest? (2014, neutral): “, Kang and Stulz 1997; Coval and Moskowitz 2001; Ivković and Weisbenner 2005; Van Nieuwerburgh and Veldkamp 2009), it has also been claimed that rational models based on information differences do not fully explain investors’ preferences for investing in local or domestic stocks (Lewis 1999; Grinbla”
Does Religion Matter to Equity Pricing? (2012, positive): “Grinblatt and Keloharju (2001) find that investors tend to hold and trade in shares of Finnish firms that are located nearby, communicate in their native language, and that appoint chief executives officers who share their cultural background.”
Ownership: Evolution and Regulation (2009, positive): “…growing literature on the relevance of distance to banking (Degryse and Ongena (2005) and Petersen and Rajan (1994) and (2002)), securities markets participation (Grinblatt and Keloharju (2001), Hong, Kubik and Stein (2004)), and financial development (Guiso, Sapienza and Zingales (2004), (2005)).”
International portfolio diversification is better than you think (2011, background): “Studies by Huberman (2001), Benartzi (2001) and Grinblatt and Keloharju (2001) (see also Barberis and Thaler, 2003) suggest that familiarity (independently of information) might be the main determinant of portfolio choice.”
Financial Expert CEOs: CEO’s Work Experience and Firm’s Financial Policies (2014, neutral): “Grinblatt and Keloharju (2001) find investors in Finland prefer to hold and trade firms whose CEO is of similar cultural origin. These findings could be consistent with behavioral biases or with better (more) information, but also with greater ability to evaluate and interpret information by referri”
The Impact of a Strong Bank-Firm Relationship on the Borrowing Firm (2011, background): “The interpretation of proximity as a measure of access to inside information is supported by plenty of evidence (e.g., Coval and Moskowitz 1999; Garmaise and Moskowitz 2004; Grinblatt and Keloharju 2001).”
Home Bias in Online Investments: An Empirical Study of an Online Crowdfunding Market (2016, positive): “While several studies focuses on behavioral explanations, some of them cite informational costs as reasons for home bias (Grinblatt and Keloharju 2001).”
National culture and capital structure decisions: Evidence from foreign joint ventures in China (2011, background): “Grinblatt and Keloharju (2001) show that investor stock trading decisions are affected by culture as proxied by common language and cultural background.”