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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
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
development and familiarity (language and distance) are considered key determinants for home bias. The literature neglects however … for this misclassification. First, we find substantially smaller home bias estimates compared to those in the literature …. Second, the explanatory power of plausible home bias determinants is lower than previously documented. Third, familiarity …
Persistent link: https://www.econbiz.de/10014526644
pervasiveness of home equity bias depend on the degree of investor protection. Additionally, we uncover a good country bias in … stocks consistent with the predictions of the model. -- Home Equity Bias ; Portfolio Choice ; Limited Participation …
Persistent link: https://www.econbiz.de/10009502217
We provide new evidence that international portfolios reflect the underlying heterogeneity in investors' beliefs. Using data on foreign sovereign debt holdings of European banks matched with their forecasts on future bond yields, we find that expecting higher returns and having more accurate...
Persistent link: https://www.econbiz.de/10012853249
We provide new evidence that international portfolios reflect the underlying heterogeneity in investors' beliefs. Using data on foreign sovereign debt holdings of European banks matched with their forecasts on future bond yields, we find that expecting higher returns and having more accurate...
Persistent link: https://www.econbiz.de/10012853652
An analysis of mutual-fund-level flow data into EM bond and equity markets confirms that different types of funds behave differently. Bond funds are more sensitive to global factors and engage more in return chasing than equity funds. Flows from retail, open-end, and offshore funds are more...
Persistent link: https://www.econbiz.de/10012996081
When value and glamour stocks missed earnings expectation targets, what happened to their stock prices over the following year? Prices of value stocks increased when earnings expectations were beat and missed - and even when business fundamentals deteriorated. Glamour stocks behaved more...
Persistent link: https://www.econbiz.de/10013037751
In the last decade, the Foreign Institutional Investor (FII) flows have increased almost twenty times and attained shares of thirteen and six percent in the National Stock Exchange and Bombay Stock Exchanges respectively in the cash segment of the Indian equity market. This raises the issue of...
Persistent link: https://www.econbiz.de/10013113836
This paper examines institutions' portfolio allocation and performance in US securities. We test how information immobility, proxied by market correlation and cultural and geographical distance between the investors' home markets and the US, influences portfolio strategies. Consistent with...
Persistent link: https://www.econbiz.de/10013114040