The Impact of Firm Location on Equity Issuance
用公司所在地作为信息成本的代理变量，发现农村公司比城市公司更少进行增发，且发行时使用的承销商质量更低。
In this paper, I use location as a proxy for the ability of a firm to issue equity. Numerous studies indicate that investors are better able to obtain information on nearby companies. I posit that costs in generating information will be higher for rural firms with few investors in their proximity, than for urban firms with many nearby investors. As predicted, I find that rural firms are less likely to conduct seasoned equity offerings than firms located in urban areas. Furthermore, I find that when a rural firm issues equity, it uses a lower‐quality underwriter than otherwise similar urban firms.