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

^*Corresponding author for this work

Research output: Conference Papers › RGC 33 - Other conference paper › peer-review

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.

Original language	English
Publication status	Presented - 6 Dec 2019
Event	The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance - Guangzhou, China Duration: 6 Dec 2019 → 8 Dec 2019

Conference

Conference	The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance
Place	China
City	Guangzhou
Period	6/12/19 → 8/12/19

Research Keywords

time distance
mutual fund holdings
site visit

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The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance
TIAN, L. (Participant)
6 Dec 2019
Activity: Organizing or Participating in a conference / an event › Conference / Symposium
The Annual Academic Meeting of Foreign Academic Exchange Committee of China Accounting Association and 2nd Academic Conference of China Journal of Accounting Studies
TIAN, L. (Speaker)
20 Sept 2019
Activity: Talk/lecture or presentation › Presentation

Cite this

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

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. ",

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author = "Qiliang Liu and Li Tian and Junbo Wang",

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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 33 - Other conference paper › peer-review

TY - CONF

T1 - Time Distance and Mutual Fund Holding Horizon

T2 - The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance

AU - Liu, Qiliang

AU - Tian, Li

AU - Wang, Junbo

PY - 2019/12/6

Y1 - 2019/12/6

N2 - 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.

AB - 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.

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KW - site visit

M3 - RGC 33 - Other conference paper

Y2 - 6 December 2019 through 8 December 2019

ER -

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

Abstract

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Research Keywords

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Activities

The Cross-straits New Era Accounting and Auditing Academic Forum and the 3rd Annual Conference of Accounting Academic Alliance

The Annual Academic Meeting of Foreign Academic Exchange Committee of China Accounting Association and 2nd Academic Conference of China Journal of Accounting Studies

Cite this