Liquidity : Urban Versus Rural Firms

  title={Liquidity : Urban Versus Rural Firms},
  author={Tim Loughran and Shane Corwin and Peter R Easton and Kewei Hou and George Korniotis and Alok Kumar and Jennifer Marietta-Westberg},
  • Tim Loughran, Shane Corwin, +4 authors Jennifer Marietta-Westberg
  • Published 2005
Our paper examines the impact of geographic location on liquidity for U.S. ruraland urban-based companies. Even after adjusting for size and other factors, rural firms trade much less, are covered by fewer analysts, and are owned by fewer institutions than urban firms. Trading costs are higher for rural Nasdaq firms, and volume that can be attributed to marketwide factors is lower for rural stocks. The findings add to our understanding of the way that access to information and familiarity… CONTINUE READING
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