Financial information, physical proximity and Covid

The experience of Asian sell-side equity research analysts

Bibliographic Data

ID8944221
AuthorsWilliam Bratton, William W Bratton (0009-0002-5232-259X, University of Oxford, corresponding author), Daniel Wojcik (0000-0003-2158-284X, University of Oxford), Dariusz Wójcik (0000-0002-4200-3432)
Year2022
Volume137
Pages135-145
Publication date2022-11-17
Peer ReviewedYes
Open AccessYes
TypeARTICLE
VenueGeoforum (JOURNAL)
Journal identifiersISSN: 0016-7185 • E-ISSN: 1872-9398
PublisherElsevier BV (PUBLISHER)
DOI10.1016/j.geoforum.2022.11.001
PMID36415487
OpenAlexW4309633297
LanguageEN
Citations received3
References cited64

The need for physical proximity and face-to-face communication in financial information flows is contested. But the movement restrictions imposed across Asia during the COVID-19 pandemic, together with the elevated information needs as financial markets became stressed, provided the unique circumstances for a natural experiment to test the extent to which physical interaction is important in the origination and distribution of financial information. Drawing upon 70 interviews undertaken across Asia during 2021, primarily with sell-side analysts who act as information intermediaries in the financial ecosystem, this article provides evidence that physical proximity and face-to-face communication remains highly valued, particularly when accessing information embedded in informal local networks and originated through reciprocal client relationships. Analysts physically restricted from contacts at corporates and within their associated operating environments, reported a degradation of knowledge, especially versus more proximate competitors. The enforced physical separation also weakened previously strong social and reciprocal relationships with clients, even those co-located in the same city. Although these trends may be gradual and incremental rather than dramatic, they are persistent and self-reinforcing, and demonstrate the continued benefits of proximity and face-to-face interaction, with longer-term implications for financial geographies

Business · Competitor analysis · Diversification (marketing strategy · Economics · Equity (law · Face (sociological concept · Financial intermediary · Intermediary · Political science · Reciprocal · Sociology · Aviation Industry Analysis and Trends · Finance · Global Urban Networks and Dynamics · Marketing · Sharing Economy and Platforms

Tools

Open DOIOpen Access