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 …

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 …

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 …

behavior of the home bias - an initial plateau before 1985, then a decrease until 1994 followed by stabilization on another … home bias until its steady state. In the long run, the home bias remains large due to the interaction of the optimal … explanatory variables, we are able to explain at least 46.8% of the variation of the home bias for 19 developed countries from …

The observed international home bias has traditionally been viewed as an anomaly. This paper provides statistical … significantly different than a 100% domestic allocation (i.e. extreme home bias). These results are robust to the shorting of equity …

portfolios. Empirical studies suggest that informational asymmetries may play a role in explaining the bias towards domestic … fraction of the home equity bias observed in the data. The main departure from previous theoretical work is the assumption that …