This paper analyses the impact of information on international portfolio investments. We decompose information into two categories: information that is observable by investors from all countries (homogeneous), and information that differs in contents between countries (heterogeneous...

We use data on the country allocations of investors from several countries to test the hypothesis of Dahlquist et al. (2003). Our results show that the country allocation in the international portfolio of these investors do not seem to be influenced by the choice between the world market...