Distinguishing two components of the preference for geographical proximity – the domestic country bias assessing investors' holdings within the domestic market, and the foreign country bias assessing investors' bilateral holdings within a particular host, I document a number of stylized facts...

I examine the international diversification gains from the perspective local investors using MSCI index data for 48 stock markets. I implement a framework recently proposed by Rudin and Morgan (2006, Journal of Portfolio Management). Based upon a principal components analysis run over the...

I provide an analysis of the home bias in international equity investments using data for the year-end 2006. Distinguishing two components of the local equity preference – the “domestic country bias” indicating whether local investors overinvest the domestic market, and the “foreign...