Using data of US domestic mergers and acquisitions transactions, this paper shows that acquirers have a preference for geographically proximate target companies. We measure the 'home bias' against benchmark portfolios of hypothetical deals where the potential targets consist of firms of similar...

Automated high frequency trading (HFT) has grown tremendously in the past twenty years and is responsible for about half of all trading activities at stock exchanges worldwide. Geography has been absolutely central to the rise of HFT due to a market design of ‘continuous trading' that allows...