In this paper, I explore the determinants of foreign bias in international portfolio investment focusing on a … uncertainty avoidance helps to explain foreign bias and that it has an amplifying effect on unfamiliarity and should be accounted …

increases in investors' risk aversion which in turn increases investors' proneness to familiarity bias. I hypothesize that … volatility is high. The average home bias and country concentration of investors' foreign holdings are of 8-10% larger during …

We show that the local bias in US mutual fund portfolios varies significantly over time and is more pronounced at times … of heightened market uncertainty, such as during financial crises. Similarly, local bias is less pronounced in periods … explaining the dependence of local bias on market conditions, and that our evidence is more consistent with a behavioral …