Trust and Local Bias
研究发现美国高信任地区的机构投资者本地偏好更低，投资组合更分散，且信息优势仅存在于低信任地区，说明信任影响投资决策。
In this article, we examine the effect of social trust on local bias. Our evidence suggests that institutional investors located in high-trust regions of the United States exhibit lower local bias. Moreover, we find that high-trust investors are better diversified, suggesting that trust helps accomplish greater diversification. The results are not due to firm, demographic, or local economic characteristics. Additional analysis reveals that the documented informational advantage in local holdings exists only in low-trust regions. We show that this finding is consistent with a trust explanation.