TY  - UNPD
A1  - Mengoli, Stefano
A1  - Pagano, Marco
A1  - Pattitoni, Pierpaolo
T1  - The geography of investor attention
T2  - Center for Financial Studies (Frankfurt am Main): CFS working paper series ; No. 671
N2  - Retail investors pay over twice as much attention to local companies than non-local ones, based on Google searches. News volume and volatility amplify this attention gap. Attention appears causally related to perceived proximity: first, acquisition by a nonlocal company is associated with less attention by locals, and more by nonlocals close to the acquirer; second, COVID-19 travel restrictions correlate with a drop in relative attention to nonlocal companies, especially in locations with fewer fights after the outbreak. Finally, local attention predicts volatility, bid-ask spreads and nonlocal attention, not viceversa. These findings are consistent with local investors having an information-processing advantage.
T3  - CFS working paper series - 671 
KW  - attention
KW  - retail investors
KW  - local investors
KW  - distance
KW  - news
KW  - liquidity
KW  - volatility
Y1  - 2021
UR  - http://publikationen.ub.uni-frankfurt.de/frontdoor/index/index/docId/63342
UR  - https://nbn-resolving.org/urn:nbn:de:hebis:30:3-633424
UR  - https://ssrn.com/abstract=3983610
N1  - Marco Pagano gratefully acknowledges financial support from the Italian Ministry for University and Research (MUR) and the Einaudi Institute for Economics and Finance (EIEF).
IS  - November 21, 2021
PB  - Center for Financial Studies
CY  - Frankfurt am Main
ER  -