In this study, we empirically analyze Chinese firms listed on US exchanges to examine the standalone effects of geographic and market proximity on equity performance. In this regard, we find a negative association between Chinese institutional investors domiciled in the same country where investee firms are incorporated and improved earnings management. However, we find no significant relationship between US institutional ownership and earnings management. Hence, our findings support the geographic rather than the market proximity advantage. Furthermore, the geographic proximity advantage is more substantial in firms with high information opacity, and the results are not altered by choice of earnings management variables.