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. Such return driven behavior of foreign investors is especially pronounced in emerging bond markets. Meanwhile, home bias is …
Persistent link: https://www.econbiz.de/10011791937
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 … report several positive country bias ratios suggesting that the source country's investors overweigh the destination market …
Persistent link: https://www.econbiz.de/10012843913
time-varying properties of correlations across countries. The home bias has the effect of increasing local influences on …
Persistent link: https://www.econbiz.de/10014023855
bias, sheds light on a new information channel for international investment decisions, and contributes to the debate on …
Persistent link: https://www.econbiz.de/10012974761
Credit rating agencies are frequently criticized for producing biased sovereign ratings. This article discusses how the home country of rating agencies could affect rating decisions as a result of political economy influences and cultural distance. Using data from nine agencies based in six...
Persistent link: https://www.econbiz.de/10013020102
countries, we investigate empirically if there is systematic evidence for a home bias in sovereign ratings. Specifically, we use … explained by the fundamentals of rated countries, our results provide empirical support for the existence of a home bias in … sovereign ratings. We find that the bias becomes more accentuated following the onset of the Global Financial Crisis and appears …
Persistent link: https://www.econbiz.de/10014155257
countries, we investigate empirically if there is systematic evidence for a home bias in sovereign ratings. Specifically, we use … explained by the fundamentals of rated countries, our results provide empirical support for the existence of a home bias in … sovereign ratings. We find that the bias becomes more accentuated following the onset of the Global Financial Crisis and appears …
Persistent link: https://www.econbiz.de/10013071483
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 country bias” indicating whether investors overinvest or underinvest a …
Persistent link: https://www.econbiz.de/10012857537
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 …
Persistent link: https://www.econbiz.de/10010428731
100% for the largest domestic industries. While this foreign industry bias partly reflects familiarity-based motives, a … learning motive contributing to the bias. This suggests that differences in industry structures across domestic stock markets …
Persistent link: https://www.econbiz.de/10012973329