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Game hoarding in Europe: Stock-price consequences of local bias

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Standard

Game hoarding in Europe : Stock-price consequences of local bias. / Aabo, Tom; Pantzalis, Christos; Sørensen, Maja Stoholm.

In: European Journal of Finance, Vol. 19, No. 3-4, 2013, p. 318-335.

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleResearchpeer-review

Harvard

Aabo, T, Pantzalis, C & Sørensen, MS 2013, 'Game hoarding in Europe: Stock-price consequences of local bias', European Journal of Finance, vol. 19, no. 3-4, pp. 318-335. https://doi.org/10.1080/1351847X.2012.689775

APA

Aabo, T., Pantzalis, C., & Sørensen, M. S. (2013). Game hoarding in Europe: Stock-price consequences of local bias. European Journal of Finance, 19(3-4), 318-335. https://doi.org/10.1080/1351847X.2012.689775

CBE

Aabo T, Pantzalis C, Sørensen MS. 2013. Game hoarding in Europe: Stock-price consequences of local bias. European Journal of Finance. 19(3-4):318-335. https://doi.org/10.1080/1351847X.2012.689775

MLA

Aabo, Tom, Christos Pantzalis and Maja Stoholm Sørensen. "Game hoarding in Europe: Stock-price consequences of local bias". European Journal of Finance. 2013, 19(3-4). 318-335. https://doi.org/10.1080/1351847X.2012.689775

Vancouver

Aabo T, Pantzalis C, Sørensen MS. Game hoarding in Europe: Stock-price consequences of local bias. European Journal of Finance. 2013;19(3-4):318-335. https://doi.org/10.1080/1351847X.2012.689775

Author

Aabo, Tom ; Pantzalis, Christos ; Sørensen, Maja Stoholm. / Game hoarding in Europe : Stock-price consequences of local bias. In: European Journal of Finance. 2013 ; Vol. 19, No. 3-4. pp. 318-335.

Bibtex

@article{be6df36bf5ed464ea06dbbef4bfc5d2a,
title = "Game hoarding in Europe: Stock-price consequences of local bias",
abstract = "Local bias within a country and between countries is well established in the empirical literature. However, the underlying reasons are less well established. In a simple supply and demand framework, Hong, Kubik and Stein (JFE 2008) find an “only-game-in-town” effect in the U.S. - the stock price in a region decreases in the ratio of aggregate book value of listed firms to the aggregate personal income (“RATIO”). We first replicate the HKS (2008) study using European data and find an opposite effect, a “game-hoarding” effect. We then investigate the underlying factors of RATIO and find that after controlling for differences in origin of law, investor rights, corruption and Euro adoption, neither a game-hoarding effect nor an only-game-in-town effect is strongly supported in the European case. The results are important in understanding the concept of local bias in a cross-country framework.",
keywords = "Local bias, Only-game-in-town effect, Game-hoarding effect, Europe",
author = "Tom Aabo and Christos Pantzalis and S{\o}rensen, {Maja Stoholm}",
note = "Campus adgang til artiklen / Campus access to the article",
year = "2013",
doi = "10.1080/1351847X.2012.689775",
language = "English",
volume = "19",
pages = "318--335",
journal = "European Journal of Finance",
issn = "1351-847X",
publisher = "Taylor & Francis Online",
number = "3-4",

}

RIS

TY - JOUR

T1 - Game hoarding in Europe

T2 - Stock-price consequences of local bias

AU - Aabo, Tom

AU - Pantzalis, Christos

AU - Sørensen, Maja Stoholm

N1 - Campus adgang til artiklen / Campus access to the article

PY - 2013

Y1 - 2013

N2 - Local bias within a country and between countries is well established in the empirical literature. However, the underlying reasons are less well established. In a simple supply and demand framework, Hong, Kubik and Stein (JFE 2008) find an “only-game-in-town” effect in the U.S. - the stock price in a region decreases in the ratio of aggregate book value of listed firms to the aggregate personal income (“RATIO”). We first replicate the HKS (2008) study using European data and find an opposite effect, a “game-hoarding” effect. We then investigate the underlying factors of RATIO and find that after controlling for differences in origin of law, investor rights, corruption and Euro adoption, neither a game-hoarding effect nor an only-game-in-town effect is strongly supported in the European case. The results are important in understanding the concept of local bias in a cross-country framework.

AB - Local bias within a country and between countries is well established in the empirical literature. However, the underlying reasons are less well established. In a simple supply and demand framework, Hong, Kubik and Stein (JFE 2008) find an “only-game-in-town” effect in the U.S. - the stock price in a region decreases in the ratio of aggregate book value of listed firms to the aggregate personal income (“RATIO”). We first replicate the HKS (2008) study using European data and find an opposite effect, a “game-hoarding” effect. We then investigate the underlying factors of RATIO and find that after controlling for differences in origin of law, investor rights, corruption and Euro adoption, neither a game-hoarding effect nor an only-game-in-town effect is strongly supported in the European case. The results are important in understanding the concept of local bias in a cross-country framework.

KW - Local bias

KW - Only-game-in-town effect

KW - Game-hoarding effect

KW - Europe

U2 - 10.1080/1351847X.2012.689775

DO - 10.1080/1351847X.2012.689775

M3 - Journal article

VL - 19

SP - 318

EP - 335

JO - European Journal of Finance

JF - European Journal of Finance

SN - 1351-847X

IS - 3-4

ER -