Geographic proximity and price efficiency: Evidence from high‐speed railway connections between firms and financial centers
研究企业所在地与金融中心的地理邻近性如何影响股票价格效率，利用中国高铁连接作为外生冲击，发现连接企业的股票定价更有效，且对距离近、规模小、机构持股和分析师覆盖少的企业影响更强。
Abstract We study how geographic proximity to financial centers affects price efficiency. Using high‐speed railway connections between firm cities and their nearest financial centers in China as exogenous shocks, we find stocks of connected firms are more efficiently priced than those of firms that are not connected. Consistent with our hypothesis, ease of travel has a stronger effect on firms that are closer to financial centers, smaller, have less institutional ownership and financial analyst coverage, and are not on the short sales list. Our paper highlights the importance of the geographic proximity of firms to financial centers on financial market efficiency.