An underlying assumption in the executive compensation literature is that there is a national labor market for CEOs. The urban economics literature, however, documents higher ability among workers in large metropolitians, which results in a real and stable urban wage premium. In this paper, we...

This study investigates the effect of geography on bondholders. Based on previous empirical evidence that associates information gathering costs to distance, we argue that when bondholders perceive corporate information of remote firms to be more difficult to obtain and monitor, they assign...

We find that the location of corporate headquarters significantly affects the firm's bondholders. Similar to Loughran and Schultz (2006) and others, who show that investors are better able to obtain information on nearby companies, we look at firms located in large metropolitan cities, small...