KHO, BONG-CHAN; STULZ, RENÉ M.; WARNOCK, FRANCIS E. - In: Journal of Accounting Research 47 (2009) 2, pp. 597-635
We merge portfolio theories of home bias with corporate finance theories of insider ownership to create the optimal corporate ownership theory of the home bias. The theory has two components: (1) foreign portfolio investors exhibit a large home bias against countries with poor governance because...
