Firm characteristics and location: The case of the institutional investment advisory industry in the United States, 1983-1996

This article examines the locational dynamics of the institutional investment advisory industry in the United States, 1983-1996, focusing on the factors and firm characteristics that account for institutional investment management firms' location. The institutional investment advisory industry, one of the fastest growing industries in the financial services sector, includes firms that manage the securities portfolios of institutional clients (e.g., corporate pension funds) for a fee. Descriptive and legit analyses are used to identify, compare and contrast those factors and firm characteristics associated with firm location outside (versus inside) the traditional investment management core. The findings presented in this article diminish the notion that access to a skilled financial services labor pool and a high-quality and diversified transportation and communications infrastructure is only available in the traditional core.