| Authors |
Meng, Pantzalis |
| Journal |
Journal of Financial and Quantitative Analysis |
| Year |
2020 |
| Type |
Published Paper |
| Abstract |
Foreign migration flows have important stock market consequences. Foreign-born resident networks within U.S. Metropolitan Statistical Areas (MSAs) are associated with excess return comovement between locally headquartered stocks and American Depositary Receipts (ADRs) from countries with ties to the MSA through the network of foreign-born residents. This comovement is hardly due to correlated fundamentals and at least partially driven by correlated trading within members of a common investor base consisting of foreign-born residents. Our evidence has implications for both investors and foreign multinational corporations (MNCs) seeking to reap benefits from cross-listings and is consistent with the notion that foreign-born residents exhibit both local bias and home (country) bias. |
| Keywords |
Foreign migration, social networks, stock price behavior, international diversification |
| URL |
https://doi.org/10.1017/S0022109020000976 |
| Tags |
Archival Empirical |
Asset Pricing, Trading Volume and Market Efficiency |
Financing- and Investment Decisions (Individual) |
Social Network Structure
|