exhibit a local bias, even when we control for family and friends. In addition to the regular crowd, our sample includes angel …-like investors, who invest considerable amounts and exhibit a larger local bias. Well-diversified investors are less likely to suffer … having a local bias. Overall, we find that investors who direct their investments to local firms more often pick start …

-level internationalization and call into question whether investing in domestic stock indices actually leads to home bias. We use three measures … that investors who invest in their domestic market do not necessarily suffer from home bias. Instead, investing in domestic … stock indices more likely prevents investors from a home bias instead of entrapping them to insufficient portfolios …