Following the launch of the Euro in 1999, integration among Euro area financial markets increased considerably. As a result, portfolio home bias declined across the European financial markets. However, greater market integration has generated a new bias: portfolio Euro bias, a situation where...

Abstract Economic integration among Euro members has important consequences for factors driving asset pricing and asset trading within the financial markets. In particular, since the start of the EMU, cross-country equity index correlations in the region have shown upward trends and domestic...

Economic integration among Euro members has important consequences for factors driving asset pricing and asset trading within the financial markets. In particular, since the start of the EMU, cross-country equity index correlations in the region have shown upward trends and domestic investors...