investigates whether international diversification and home bias inertia are substitutes or complements. More specifically, we …, including both emerging and major markets. Results from the MVPO show that a domestic diversification strategy performs better … for any risk level up to 0.5%, whereas international diversification performs better for any risk level higher than 0 …

The weak empirical evidence linking diversification and international equity flows calls into question the … diversification paradigm at the international level and the analytical framework it implies. Using a novel measure of diversification … the role that diversification opportunities play in the determination of international equity flows. Using the concept of …

, we do not observe a similar pattern for country indexes. Thus, cross-industry diversification is superior to cross …-country diversification. The international diversification potential of industries does not vanish during volatile periods. Subsample analyses …