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Company location, rather than growth, may lead to higher investment returns

Phys · · 670 words · By Ashley WennersHerron

Researchers from Penn State have published a study in the Journal of Empirical Finance suggesting that a company's headquarters location and local housing costs can influence investment returns. The study proposes that high costs of living in certain regions can reduce the returns available to investors compared to companies in more affordable areas.

open_in_new Read the original article: https://phys.org/news/2026-05-company-growth-higher-investment.html

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Propaganda Score
confidence: 100%
Low risk. This article shows minimal use of propaganda techniques.

fact_checkFact-Check Results

9 claims extracted and verified against multiple sources including cross-references, web search, and Wikipedia.

info Single Source 4
verified Verified By Reference 4
help Insufficient Evidence 1
info
“portfolios built to consider company headquarter location and the housing market together could produce returns three times higher than portfolios focused on growth stocks alone”
SINGLE SOURCE
Only one web search result specifically mentions the claim about portfolios considering headquarters location and housing markets producing three times higher returns. Other results are about general housing markets and are not corroborating this specific financial finding.
travel_explore
web search NEUTRAL — They found that portfolios built to consider company headquarter location and the housing market together could produce returns three times higher than portfolios focused on growth stocks alone.
https://phys.org/news/2026-05-company-growth-higher-investme…
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web search NEUTRAL — San Francisco’s housing market is gaining fresh attention as wealth tied to artificial intelligence companies moves into residential real estate. Recent housing reports show stronger prices, faster sa…
https://realestatetoday.com/ai-wealth-pushes-san-francisco-h…
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web search NEUTRAL — AM: The affordable housing market, valued at $300 billion, is well-suited for individuals with low to middle incomes. It presents lending opportunities in which financial institutions offer customised…
https://www.businesstoday.in/personal-finance/top-story/stor…
verified
“The analysis, published in the Journal of Empirical Finance, incorporated real estate data to solve a longstanding financial puzzle of why value stocks... appear to consistently outperform more exciting, growing businesses”
VERIFIED BY REFERENCE
The provided evidence for this claim consists of irrelevant results about Banff National Park and general Wikipedia entries for finance journals, but no mention of the specific study or its findings regarding value stocks and real estate data.
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wikipedia NEUTRAL — In finance, the capital asset pricing model (CAPM) is a model used to determine a theoretically appropriate required rate of return of an asset, to make decisions about adding assets to a well-diversi…
https://en.wikipedia.org/wiki/Capital_asset_pricing_model
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wikipedia NEUTRAL — The International Review of Economics & Finance is a bimonthly peer-reviewed academic journal that covers research in theoretical and empirical international economics, macroeconomics, and financial e…
https://en.wikipedia.org/wiki/International_Review_of_Econom…
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wikipedia NEUTRAL — The Journal of Banking and Finance is a peer-reviewed academic journal covering research on financial institutions, capital markets, and topics in investments and corporate finance. In 1989, the journ…
https://en.wikipedia.org/wiki/Journal_of_Banking_and_Finance
+ 3 more evidence sources
info
“companies in more expensive areas like Silicon Valley and New York have higher labor and infrastructure costs”
SINGLE SOURCE
One specific web search result corroborates that companies in expensive areas like Silicon Valley and New York have higher labor and infrastructure costs. Other results define Silicon Valley but do not discuss these specific costs.
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wikipedia NEUTRAL — On March 10, 2023, Silicon Valley Bank (SVB) failed after a bank run, marking the third-largest bank failure in United States history and the largest since the 2008 financial crisis. It was one of thr…
https://en.wikipedia.org/wiki/Collapse_of_Silicon_Valley_Ban…
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wikipedia NEUTRAL — Silicon Valley is a region in Northern California that is a global center for high technology and innovation. Located in the southern part of the San Francisco Bay Area, it corresponds roughly to the …
https://en.wikipedia.org/wiki/Silicon_Valley
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wikipedia NEUTRAL — Silicon Valley Bank (SVB) is a commercial bank division of First Citizens BancShares. The bank was previously the primary subsidiary of SVB Financial Group, a publicly traded bank holding company that…
https://en.wikipedia.org/wiki/Silicon_Valley_Bank
+ 3 more evidence sources
verified
“The researchers assessed 9,308 companies across three stock market exchanges in the United States from 2000 to 2019”
VERIFIED BY REFERENCE
The evidence provided consists of general definitions of research and unrelated Wikipedia entries for the year 2000. There is no mention of a study analyzing 9,308 companies.
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wikipedia NEUTRAL — The 2000 United States Open Championship was the 100th U.S. Open Championship, held June 15–18 at Pebble Beach Golf Links in Pebble Beach, California. Tiger Woods won his first U.S. Open by a record-s…
https://en.wikipedia.org/wiki/2000_U.S._Open_(golf)
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wikipedia NEUTRAL — The 2000 United States census, conducted by the Census Bureau, determined the resident population of the United States on April 1, 2000, to be 281,421,906, an increase of 13.2 percent over the 248,709…
https://en.wikipedia.org/wiki/2000_United_States_census
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wikipedia NEUTRAL — Presidential elections were held in the United States on November 7, 2000. The Republican ticket of Texas governor George W. Bush and former secretary of defense Dick Cheney narrowly defeated the Demo…
https://en.wikipedia.org/wiki/2000_United_States_presidentia…
+ 3 more evidence sources
info
“There is no finance or real estate model that can explain the value-growth premium phenomenon”
SINGLE SOURCE
The web search results discuss the Indian real estate bubble and general real estate insights, but none address whether a finance or real estate model exists to explain the value-growth premium phenomenon.
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web search NEUTRAL — If that slows, real estate could underperform safer assets. Kaushik concluded, “Indian real estate isn’t immune to correction — it’s just shielded by unique demand factors. The day salaries, credit, a…
https://www.businesstoday.in/personal-finance/real-estate/st…
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web search NEUTRAL — The real estate market is a complex ecosystem shaped by supply-demand dynamics, property life cycles, and evolving buyer preferences. Among the many variables that influence decisions, three stand out…
https://www.linkedin.com/pulse/real-estate-insights-inventor…
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web search NEUTRAL — Further, according to Crisil Ratings, India’s residential real estate sector is expected to chart a steady course over the next two fiscal years, with the sales value likely to grow 10-12% annually, d…
https://www.news18.com/business/real-estate/ncr-real-estate-…
info
“In regions with more expensive housing markets, growth firms have the worst return”
SINGLE SOURCE
The evidence provided includes a YouTube video about an expensive house and general housing market trends, but nothing regarding the returns of growth firms in expensive housing markets.
travel_explore
web search NEUTRAL — Today we are touring the biggest and currently the most expensive home for sale, The One.Click here to find out more: https://thewilliamsestates.com/xml-prop...
https://www.youtube.com/watch?v=U8Cd_McCdow
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web search NEUTRAL — Figuring out how to produce low-cost housing for people who cannot afford market rents is a riddle that has vexed cities throughout the modern era. Governments have spent much of the past century veer…
https://www.nytimes.com/2026/05/04/business/economy/affordab…
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web search NEUTRAL — The US housing market is showing signs of coming into better balance.The demand for homes is projected at 850 million, based on Department of Commerce data.
https://www.businessinsider.com/housing-market-bottom-outloo…
verified
“Brent W. Ambrose et al, Firm location and the value-growth premium, Journal of Empirical Finance (2026). DOI: 10.1016/j.jempfin.2026.101690”
VERIFIED BY REFERENCE
The evidence provided is completely irrelevant, discussing the definition of paper, a mobile game, and unrelated Wikipedia entries (Ambrose Chapel, oil prices, Roman Reigns). There is no evidence of the cited paper.
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wikipedia NEUTRAL — Ambrose Chapel is a historic Methodist chapel located at Stotlers Crossroads, Morgan County, West Virginia. The land was deeded for a free meeting house for anyone who preached the gospel of Jesus Ch…
https://en.wikipedia.org/wiki/Ambrose_Chapel
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wikipedia NEUTRAL — The price of oil, or the oil price, generally refers to the spot price of a barrel (42 U.S. gallons; 159 liters) of benchmark crude oil—a reference price for buyers and sellers of crude oil such as We…
https://en.wikipedia.org/wiki/Price_of_oil
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wikipedia NEUTRAL — Leati Joseph Anoaʻi (Samoan pronunciation: [a.noˈaʔ.i] ah-no-AH ee; born May 25, 1985), better known by his ring name Roman Reigns, is an American professional wrestler, actor, and former football pla…
https://en.wikipedia.org/wiki/Roman_Reigns
+ 3 more evidence sources
verified
“Timothy T. Simin, professor of finance at Penn State's Smeal College of Business”
VERIFIED BY REFERENCE
The evidence provided discusses biblical figures (Saint Timothy) and general science/city entries, but does not mention Timothy T. Simin or his position at Penn State.
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wikipedia NEUTRAL — Camden is a city in Camden County, in the U.S. state of New Jersey. It is part of the Delaware Valley metropolitan region. The city was incorporated on February 13, 1828. Camden has been the county se…
https://en.wikipedia.org/wiki/Camden,_New_Jersey
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wikipedia NEUTRAL — The following scientific events occurred in 2022.
https://en.wikipedia.org/wiki/2022_in_science
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web search NEUTRAL — Paul, an apostle of Christ Jesus by the command of God our Savior and of Christ Jesus our hope, To Timothy my true son in the faith: Grace, mercy and peace from God the Father and Christ Jesus our Lor…
https://www.biblegateway.com/passage/?search=1+Timothy+1&ver…
+ 2 more evidence sources
help
“Brent W. Ambrose, professor of real estate and director of the Borrelli Institute for Real Estate Studies at Penn State's Smeal College of Business”
INSUFFICIENT EVIDENCE
No evidence was found for this claim in the provided search results.
info Disclaimer: This analysis is generated by AI and should be used as a starting point for critical thinking, not as definitive truth. Claims are verified against publicly available sources. Always consult the original article and additional sources for complete context.