Giannetti, Mariassunta; Laeven, Luc - C.E.P.R. Discussion Papers - 2012
We show that the local bias in U.S. mutual fund portfolios varies significantly over time and is more pronounced at … times of heightened market uncertainty, such as during financial crises. Similarly, the local bias is less pronounced in … factors in explaining the dependence of local bias on market conditions, and that our evidence is more consistent with a …