Australian investors' home bias in portfolio equity investment

Mishra, Anil V. (2006) Australian investors' home bias in portfolio equity investment. In: 35th Australian Conference of Economists (ACE 2006), 25-27 Sept 2006, Perth, Australia.

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Abstract

This paper employs International Monetary Fund’s high quality cross-border equity holdings dataset to investigate the determinants of home bias puzzle in the Australian context. This paper indicates that the share of destination countries’ stock market that is invested in Australia and transaction costs have significant impact on the home bias puzzle. Capital controls and trade links also impact the home bias puzzle; however their effect is insignificant. This paper also employs World Bank’s governance indicators and other legal variables to investigate the phenomenon of home bias. Information asymmetries arising due to countries’ regulatory and legal environment have significant impact on the home bias puzzle.


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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: Author retains copyright.
Depositing User: Dr Anil Mishra
Faculty / Department / School: Historic - Faculty of Business - Department of Finance and Banking
Date Deposited: 11 Oct 2007 01:11
Last Modified: 02 Jul 2013 22:45
Uncontrolled Keywords: governance indicators, coordinated portfolio investment survey, rule of law, accounting standards
Fields of Research (FOR2008): 14 Economics > 1402 Applied Economics > 140207 Financial Economics
URI: http://eprints.usq.edu.au/id/eprint/2621

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