The objective of this paper is to measure the degree of Home Bias within the holdings of portfolio and to identify their determining factors. By following an intuitive reasoning, the authors have chosen a number of susceptible factors that have an impact on Home Bias. In fact, they have...

Purpose – The purpose of this paper is to examine whether there exist significant benefits from diversification into frontier markets for an Australian investor in comparison to a US investor. Design/methodology/approach – The study uses the computationally efficient ADCC GARCH model to...

Purpose The purpose of this paper is to investigate the relationship between international diversification (ID) and performance in multinational firms by proposing a new and unified theory of multinationality that incorporates, integrates and extends previous concepts and hypotheses....

The purpose of this study is to provide further evidence on the importance of international diversification, and to determine the optimal allocation of assets in a portfolio comprising domestic (Australian) and international assets. The study focuses on stock index futures contracts in five...

Purpose – The main purpose of this paper is to investigate whether Chinese investors can benefit from international diversification and where these benefits are to be found. Design/methodology/approach – This paper applies an expanding optimization procedure, which is different from the...

Purpose The purpose of this paper is to explore the largely marginalized role of distance or “space” in multinationality and performance (MP) research. It argues that scholars should adopt a more fine-grained, or relativistic approach when studying the link between MP and that...

Purpose The purpose of this paper is to contribute to the literature in three ways: first, the authors investigate the impact of the sampling errors on optimal portfolio weights and on financial investment decision. Second, the authors advance a comparative analysis between various domestic and...

Purpose The purpose of this paper is to revisit the causal relationships of the liabilities of inter-regional foreignness to show that the process of regionalization itself has affected firms’ strategic capabilities and focus. The constraints of these regions, a consequence of regionalization...

Purpose – The purpose of this paper is to provide a critical discussion of the scope and correct scale metrics used in the measurement of multinationality. Design/methodology/approach – There are two ways of measuring the degree of multinationality (sometimes called the international...

Despite changes in international trade agreements and the introduction of new technologies that facilitate international business, many firms, especially SMEs, still do not diversify into international markets. In this paper, we suggest that an important factor that can influence the...