Hornuf, Lars; Schmitt, Matthias; Stenzhorn, Eliza - 2020
exhibit a local bias, even when we control for family and friends. In addition to the regular crowd, our sample includes angel …-like investors, who invest considerable amounts and exhibit a larger local bias. Well-diversified investors are less likely to suffer … having a local bias. Overall, we find that investors who direct their investments to local firms more often pick start …
