The Local Bias of Individual Investors

By Ning Zhu. 2002

222 citations recorded by the source corpus.

View Paper: https://www.semanticscholar.org/paper/dc70be08b37116d932e3f179e3f019b41cc692e7

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Citations in the corpus

Rain or Shine: Where is the Weather Effect? (2005, unknown): “Although previous studies using similar data (Hong and Kumar, 2002; Zhu, 2002) find that individuals tend to be contrarians around events such as analyst recommendation changes and earnings announcements, it is still somewhat surprising that individual fund flow into the equity market is strongly…”
Weather, Stock Returns, and the Impact of Localized Trading Behavior (2003, methodology): “…importantly, the nature of the events used in this study (adverse weather conditions and a religious holiday) implies that factors other than information advantage (Coval and Moskowitz (1999)), familiarity (Huberman (2001)), or over-reaction (Zhu (2002)), may be responsible for localized trading.”
Equity Portfolio Diversification (2001, methodology): “Several studies (e.g., Huberman, 2001; Zhu, 2002; Ivković and Weisbenner, 2005) indicate that individual investors exhibit a preference for local stocks.”
Hard-to-Value Stocks, Behavioral Biases, and Informed Trading (2009, unknown): “I also examine whether the market-level uncertainty exacerbates investors’ local bias (e.g., Huberman (2001), Grinblatt and Keloharju (2001), Zhu (2002), Ivković and Weisbenner (2005)) and home bias (e.g., French and Poterba (1991), Bohn and Tesar (1996)).4 The local and home bias measures offer a…”
Information Diffusion Effects in Individual Investors' Common Stock Purchases: Covet Thy Neighbors' Investment Choices (2007, unknown): “The fourth column shows individual investors' disproportionate preference for local stocks (17.1% of all purchases), a phenomenon studied in Ivkovi´c and Weisbenner (2005) and Zhu (2002) .”
Investing in Peace: The Motivational Dynamics of Diaspora Investment in Post-Conflict Economies (2009, background): “Additional research on individual investors suggests that local bias may be driven by simple familiarity and better information (Ivkovic and Weisbenner, 2005; Zhu, 2003).”
Financial Advisors: A Case of Babysitters? (2012, unknown): “This is consistent with some recent studies indicating that the magnitude of investment mistakes decreases with sophistication and experience (see e.g. Grinblatt and Keloharju, 2001; Zhu, 2002; Feng and Seasholes, 2005; Lusardi and Mitchell, 2007).”
Portfolio Concentration and the Performance of Individual Investors (2008, unknown): “Zhu (2002) and Ivković and Weisbenner (2005) show that individuals exhibit considerable local bias.”
The Impact of Firm Location on Equity Issuance (2008, result): “This explanation receives some support by the finding of Zhu (2002) that advertising by companies significantly reduces local bias.”