Proximity to Wealthy Individuals Boosts Firm Performance, Study Finds
Large shareholders who live near a company's headquarters can have a big impact on how the company performs. Researchers found that these individual shareholders, who are not part of the company's management, tend to invest in firms close to where they live. By studying this pattern, the researchers created a way to figure out how these shareholders affect companies. They discovered that these large individual shareholders can influence a company's decisions and success, even after taking into account other factors.