Time distance and mutual fund holding horizon: Evidence from a quasi-natural experiment setting of high-speed railway opening

Using a quasi-natural experiment, we investigate whether the opening of high-speed railways affects mutual fund holdings. Applying the difference-in-difference method, we find that mutual fund holdings in remote listed companies increase after the introduction of high-speed railways in their cities. This effect is primarily observed within the optimal interval of the railway. Opening high-speed railways also facilitates mutual fund visits to remote listed companies, resulting in increased holdings. © 2024 Accounting and Finance Association of Australia and New Zealand.