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. This bias is stronger if the sovereign is risky and shareholder rights are strong, as evidence of a risk …-shifting explanation of the home bias. In addition, the bias is stronger if the sovereign is risky and the government has positive … ownership in the bank, as evidence of a government pressure channel. The home bias is positively valued by the stock market, as …
Persistent link: https://www.econbiz.de/10013020123
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
Using data from the April 2005 Survey of Consumers, we develop an index of investor sophistication from a set of 14 quiz-like questions. We correlate our measure of sophistication with holdings of international investments, measures of diversification, and holdings of an employer's stock. We...
Persistent link: https://www.econbiz.de/10013146631
In this paper I explore the role of portfolio diversification in explaining the distribution of foreign investment across countries. I capture the portfolio diversification motive by a measure of country-specific riskiness, “covariance risk,” which I construct as how countries' growth rates...
Persistent link: https://www.econbiz.de/10013061869
discuss the role of \home bias", i.e. the tendency of banks to concentrate their sovereign bond holdings in their domicile …
Persistent link: https://www.econbiz.de/10012197781
discuss the role of \home bias", i.e., the tendency of banks to concentrate their sovereign bond holdings in their domicile …
Persistent link: https://www.econbiz.de/10011992507
Households with familiarity biases tilt their portfolios toward a few risky assets. The resulting mean-variance loss from portfolio underdiversification is equivalent to only a modest reduction of about 1 percent per year in a household's portfolio return. However, once we consider also the...
Persistent link: https://www.econbiz.de/10012936546
Persistent link: https://www.econbiz.de/10013417395
With increasing financial integration and improving regulatory quality, we expect equity home bias to decline. Drawing … integration and regulatory quality; and equity home bias in emerging Asia. To test the significance, a pooled OLS estimation was … lower equity home bias against global and regional stocks. The estimates also find that the lag value of the home bias …
Persistent link: https://www.econbiz.de/10010367363
This paper analyzes the behavior of gross capital inflows across 34 emerging markets (EMs), including eight Asian economies. We first confirm that aggregate inflows to EMs comove considerably. Three findings are reported: (i) the aggregate comovement conceals significant heterogeneity across...
Persistent link: https://www.econbiz.de/10011756541