Using a large set of Swedish data at the individual and institutional investor level this paper studies local bias among investors. In relation to existing research the paper expects that the investor groups defined in this paper in Sweden are prone to local bias and that the results are...

This paper examines cross regional differences in news tone, for the same news event, and relates it to trading activity of local and non-local investors. Using a combination of detailed investor and media data the results show that when news, particularly locally sourced news, is republished...

We analyze the distributional properties of ownership concentration measures and find that measures come from different underlying statistical distributions. Consistent with theory, some measures that are classified to represent a monitoring dimension have a positive influence on firm performance;...

We examine the profitability of insider trading under SEC Rule 10b5-1 plans. The plans do work to prevent some informed trading. However, on average, insider trading under the safe harbor plans appears to be motivated by material non-public information. We propose some policy changes to tighten...

We introduce the concept of “birthplace bias” to examine the extent to which individual investors' local bias is explained by their place of birth. In addition, we conduct a counterfactual analysis in order to compare their biases before and after they move to a new place. We find that the...

We examine the relationship between managerial myopia and three governance mechanisms: ownership concentration, short-term incentive plans and the market for corporate control. We first examine a number of measures for long-term investments in physical assets and show that the net depreciation...

We examine the familiarity hypothesis of home bias by studying how foreign ownership of Swedish firms is affected by the mandatory adoption of IFRS. We decompose foreign investors into institutional and non-institutional investors. Foreign investors are further decomposed into EU (IFRS adopting...

This book helps readers understand the widely documented distortion in the portfolio choice of individual investors toward proximate firms - the proximity bias phenomenon. First, it recapitulates the fundamentals of modern portfolio theory. It then goes on to describe and demonstrate different...