The impact of headquarter location on stock performance of Chinese A-share companies

Abstract

"This paper is to study the impact of dividend policy and location on the stock price of A-share market. It is found that the headquarters is located in areas and cities with convenient transportation, which is easy to obtain higher dividends. There is evidence that this relationship is related to higher exposure. Under more transparent financial constraints, companies tend to pay higher share prices. We find that the stock prices of these highly exposed companies are very sensitive to the changes of dividends and cash flow. We conclude that although headquater location has an impact on stock performance, it plays a relatively small role in the sense of re economics and can only be used as an auxiliary factor in the analysis of stock prices. This will prompt investors to pay attention to the impact of geometric economy on the company's stock performance."