Political Interference and Stock Price Consequences of Local Bias
研究发现政治干预是股票市场出现本地偏好的必要条件，且政治导致的本地偏好主要受需求驱动，对不太知名的公司影响更强。
Abstract Politics can interfere with capital markets. We show that political interference is a necessary condition for local bias in the stock market. We extend the framework of Hong, Kubik and Stein (2008) and find that the inverse relation between market‐to‐book ratios and the ratio of the aggregate book value of firms to the aggregate risk tolerance of investors in a state ( RATIO ) is only prevalent among firms located in areas where politics has substantial influence on local markets. Our results indicate that the impact of politically induced local bias is primarily demand driven and stronger among firms that are less visible.