Time Distance and Mutual Fund Holding Horizon: Evidence from A Quasi-natural Experiment Setting of High-speed Railway Opening

Qiliang Liu; Li Tian; Junbo Wang

Time Distance and Mutual Fund Holding Horizon : Evidence from A Quasi-natural Experiment Setting of High-speed Railway Opening

Research output: Conference Papers (RGC: 31A, 31B, 32, 33) › 33_Other conference paper › peer-review

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Author(s)

Qiliang Liu
Li Tian
Junbo Wang

Related Research Unit(s)

Detail(s)

Original language	English
Publication status	Presented - 6 Dec 2019

Conference

Title	The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance
Place	China
City	Guangzhou
Period	6 - 8 December 2019

Link(s)

	Check@CityULib
Permanent Link	https://scholars.cityu.edu.hk/en/publications/publication(1181e640-73af-404c-9848-7eabbc0eb0f2).html

Abstract

Using a quasi-natural experiment setting of high-speed railway opening, we examine whether mutual fund holding horizon changes after the time distance between mutual funds and listed companies is shortened following the opening of high-speed railway. With the DID (difference-in-difference) method, we find that the holdings of mutual fund in remote listed companies increase following high-speed railway opening of remote cities in which these listed companies are located. We also find that this effect is mainly reflected in the high-speed railway transportation optimal interval (i.e. physical distance between 240 and 1800 kilometers), and this effect is stronger for companies with lower analyst coverage. We further find that the opening of high-speed railway facilitates the site visits of mutual funds to remote listed companies, which will eventually increase mutual fund holdings and extend mutual fund holding horizon.

Research Area(s)

time distance, mutual fund holdings, site visit

Citation Format(s)

[ RIS ] [ BibTeX ]

Time Distance and Mutual Fund Holding Horizon : Evidence from A Quasi-natural Experiment Setting of High-speed Railway Opening. / Liu, Qiliang; Tian, Li ; Wang, Junbo.

2019. The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance, Guangzhou, China.

Research output: Conference Papers (RGC: 31A, 31B, 32, 33) › 33_Other conference paper › peer-review

Liu, Q, Tian, L & Wang, J 2019, 'Time Distance and Mutual Fund Holding Horizon: Evidence from A Quasi-natural Experiment Setting of High-speed Railway Opening', The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance, Guangzhou, China, 6/12/19 - 8/12/19.

Liu, Q., Tian, L., & Wang, J. (2019). Time Distance and Mutual Fund Holding Horizon: Evidence from A Quasi-natural Experiment Setting of High-speed Railway Opening. The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance, Guangzhou, China.

Liu Q, Tian L , Wang J. Time Distance and Mutual Fund Holding Horizon: Evidence from A Quasi-natural Experiment Setting of High-speed Railway Opening. 2019. The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance, Guangzhou, China.

Liu, Qiliang ; Tian, Li ; Wang, Junbo. / Time Distance and Mutual Fund Holding Horizon : Evidence from A Quasi-natural Experiment Setting of High-speed Railway Opening. The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance, Guangzhou, China.