Using data on direct investments of individual investors from 2000 to 2008, this paper shows that investors are persistent in holding local stocks even though they do not earn abnormal return on local biased investments. This preference might be explained by familiarity hypothesis, hedging needs...

We examine the familiarity hypothesis of home bias by studying how foreign ownership of Swedish firms is affected by the mandatory adoption of IFRS. We decompose foreign investors into institutional and non-institutional investors. Foreign investors are further decomposed into EU (IFRS adopting...

Using a large set of Swedish data at the individual and institutional investor level this paper studies local bias among investors. In relation to existing research the paper expects that the investor groups defined in this paper in Sweden are prone to local bias and that the results are...

Using a panel data set that provides detailed information on investors' stockholding, this paper studies the relationship between local bias and risk-adjusted portfolio return while controlling for alternative exogenous determinants within Sweden between the years of 2000 and 2007. Existing...

A large body of literature suggests that CEOs have misaligned incentives to undertake acquisitions in an attempt to increase their pay. This paper shows that the likelihood of post-acquisition CEO turnover can act as a constraint on such incentives. The acquisition premium in pay decreases by...