Purpose – Recent research on local bias provides evidence that investors' portfolios include a non …‐negligible allocation to stocks in firms that are geographically proximate to the investors. The reasons postulated for local bias include …‐documented local bias in investors' portfolios. Design/methodology/approach – Using a hand‐collected panel dataset spanning 15 years of …

explain individual investors' local bias. Accounting numbers and information asymmetry matter less to individual investors …' local bias than to that of institutional investors. Instead, we hypothesize that individuals' non-fundamentally based …

Theory suggests that, in the presence of local bias, the price of a stock should be decreasing in the ratio of the …