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Economics Speaker Series: Dr. Gady Jacoby
February 28 at 12:30 pm - 2:00 pm
The Economics Speaker Series continues on February 28 with a lecture by Professor Gady Jacoby on how racial residential integration (RRI) influences information diffusion in the stock market.
Dr. Jacoby is the Dean of the Faculty of Management at UBC Okanagan. His research focuses on asset pricing, behavioural finance, sustainable finance and international finance.
Registration is not required. Everyone is welcome to attend.
Abstract
We find that firms headquartered in regions with higher RRI tend to have lower information asymmetry, as reflected in a narrower adverse selection component of the bid-ask spreads and lower volume coefficient variation.
Additionally, their stock prices tend to be more informative, exhibiting stronger comovement with fundamentals and this effect is more pronounced for firms with higher active institutional ownership. We further find that active mutual fund managers exhibit stronger stock-picking abilities for local firms in regions with lower RRI.
However, when stratifying the sample by fund manager race, we find that only white portfolio managers exhibit superior stock-picking ability in lower RRI regions.
