The U.S. money management industry is geographically concentrated and diverges from the geographic clustering of public firms. We find that firms located in states with strong institutional investor presence have high valuation. These firms invest more and their investments are less dependent on internal cash flow. They are more likely to issue equity than debt for financing needs, and local institutions hold more of the newly issued equity. The results show the geographic dislocation between institutional investors and firms contributes to financial market frictions, and a strong institutional investor presence alleviates the funding friction of local firms, leading to high valuation.

美国资金管理行业地域集中，与上市公司的地域集群不同。我们发现位于具有强大机构投资者存在的州的公司具有高估值。这些公司投资更多，他们的投资较少依赖内部现金流。他们更有可能出于融资需要发行股权而不是债务，地方机构持有更多新发行的股权。结果表明，机构投资者和企业之间的地理错位助长了金融市场摩擦，而强大的机构投资者存在缓解了当地企业的融资摩擦，从而导致高估值。