Where the heart is: Information production and the home bias

Research output: Contribution to journalArticlepeer-review

17 Scopus citations


This paper tests whether home bias exists among information producers. We find that credit analysts are more generous when rating issuers from their home states compared with (a) benchmark analysts from outside the state and (b) their own standards for rating issuers from other states. This home analyst effect strengthens around key rating certifications (AAA and investment grade), reduces credit spreads, and expands affected issuers' debt capacity. We conduct several tests to address the possibility that the observed home analyst effect reflects a selection effect based on informational advantages and conclude that it instead reflects a home bias.

Original languageEnglish (US)
Pages (from-to)5532-5557
Number of pages26
JournalManagement Science
Issue number12
StatePublished - Dec 2020

All Science Journal Classification (ASJC) codes

  • Strategy and Management
  • Management Science and Operations Research


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