How Well Will Your Company's Stock Sell?

The authors present compelling evidence in a paper published in the Journal of Financial Economics that, even after adjusting for size and other factors, stocks of companies located in remote, rural areas have less liquidity than those of urban companies located in the 10 largest U.S. cities. As a result, country living comes at a cost. The paper, which analyzed the daily stock turnover rates of nearly 2,000 companies from 1983 to 2002, found shares of urban stocks turned over 50 percent more rapidly than rural stocks.

Provided by: University of Notre Dame Topic: Software Date Added: Jan 2007 Format: HTML

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