Kho, Bong-Chan; Stulz, René M.; Warnock, Francis E. - 2006
home bias of US investors towards the 46 countries with the largest equity markets did not fall from 1994 to 2004 when … portfolio theory explanations of the home bias, but is consistent with what we call the optimal insider ownership theory of the … home bias. Since foreign investors can only own shares not held by insiders, there will be a large home bias towards …
