Shive, Sophie - In: Journal of Financial Economics 104 (2012) 1, pp. 145-161
This study examines the effect of locally informed investors on market efficiency and stock prices using large power outages, which are exogenous events that constrain trading. Turnover in stocks headquartered in an outage area with 0.5% of U.S. electrical customers drops by 3–7% on the first...