Using a comprehensive new data set, we exploit the cross-sectional variation of U.S. holdings of equities in a wide range of countries to gain insight into the equity home bias phenomenon. We find that a direct barrier to international investment - restrictions on foreign ownership of equities -...

We aim to provide insight into the observed equity home bias phenomenon by analyzing the determinants of U.S. holdings of equities across a wide range of countries. In particular, we explore the role of information costs in determining the country distribution of U.S. investors' equity holdings...