American Finance Association Location Matters : An Examination of Trading Profits

@inproceedings{Hau2001AmericanFA,
  title={American Finance Association Location Matters : An Examination of Trading Profits},
  author={Harald Hau},
  year={2001}
}
The electronic trading system Xetra of the German Security Exchange provides a unique data source on the equity trades of 756 professional traders located in 23 different cities and eight European countries. We explore informational asymmetries across the trader population: Traders located outside Germany in non-Germanspeaking cities show lower proprietary trading profit. Their underperformance is not only statistically significant, it is also of economically significant magnitude and occurs… CONTINUE READING

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