funds invest about 85% in domestic assets. In this paper, we address the question why this strong home bias might exist … it can fully explain the home bias. Secondly, our empirical analysis suggests that international diversification lowers … investment risks for Latvian (pension) investors. Thus, it seems hard to explain the home bias of Latvian pension funds by lack …

that international diversification does not pay: the cost of the home bias within Euroland has been lowered (in some cases …, in light of this option, the cost of the home bias continues to be significant. …

A survey of fund managers reveals home bias for these sophisticated investors in an unrestricted setting. Proximity …, perceived informational advantage and higher expected returns are confirmed as accompanying factors. In addition, the home bias … informational advantage does not seem to be valid. Multivariate analyses indicate that home bias is mainly related to relative …

aggregate bond allocation data from CPIS. Our results show that the home bias is prevalent across all countries, despite the … decreasing of the domestic bias in most countries in the 1997–2009 period. We find that the domestic bond bias is lower in …, common language, and bilateral trade) is a major determinant to decrease the foreign bias. Finally, there is no evidence that …

the domestic market of the investor. We investigate differences in home bias on an individual level by studying portfolios … formed as a part of the new defined contribution pension plan in Sweden. We estimate the likelihood of home bias and use … bias is caused by both rational and irrational factors. Moreover, we relate home bias to investors' desire to hedge against …