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

Research output: Conference PapersRGC 33 - Other conference paperpeer-review

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Author(s)

Detail(s)

Original languageEnglish
Publication statusPresented - 6 Dec 2019

Conference

TitleThe Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance
PlaceChina
CityGuangzhou
Period6 - 8 December 2019

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)

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 PapersRGC 33 - Other conference paperpeer-review