Beugelsdijk, Sjoerd; Frijns, Bart - In: Journal of Banking & Finance 34 (2010) 9, pp. 2121-2131
This paper examines the foreign bias in international asset allocation. Following extant literature in behavioral finance, we argue that a society's culture and the cultural distance between two markets play an important role in explaining the foreign bias. In particular, we hypothesize that the...