Correlated trading and location

Research output: Contribution to journalArticlepeer-review

135 Scopus citations


This paper analyzes the trading behavior of stock market investors. Purchases and sales are highly correlated when we divide investors geographically. Investors who live near a firm's headquarters react in a similar manner to releases of public information. We are able to make this identification by exploiting a unique feature of individual brokerage accounts in the People's Republic of China. The data allow us to pinpoint an investor's location at the time he or she places a trade. Our results are consistent with a simple, rational expectations model of heterogeneously informed investors.

Original languageEnglish (US)
Pages (from-to)2117-2144
Number of pages28
JournalJournal of Finance
Issue number5
StatePublished - Oct 1 2004
Externally publishedYes

ASJC Scopus subject areas

  • Accounting
  • Finance
  • Economics and Econometrics


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