Australia's equity home bias and corporate governance

Mishra, Anil V. (2007) Australia's equity home bias and corporate governance. In: 12th Finsia-Melbourne Centre for Financial Studies Banking and Finance Conference: Developments in Financial Services: Theory Meets Practice, 24-25 Sept 2007, Melbourne, Australia.

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Abstract

This paper constructs the float adjusted measure of home bias and explores the determinants of Australia’s equity home bias by employing International Monetary Fund’s high quality dataset (2001 to 2005) on cross border equity investment. The paper finds that information asymmetries arising due to countries regulatory and legal environment have significant impact on Australia’s equity home bias. Trade linkages are found to have a significant impact on Australia’s equity home bias. Australian investors exhibit a preference for English speaking and common legal origin countries. Transaction costs, though statistically significant, have a very low value to suggest a minor impact on Australia’s home bias. This paper finds low diversification motives of Australian investors.


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Item Type: Conference or Workshop Item (Commonwealth Reporting Category E) (Paper)
Refereed: Yes
Item Status: Live Archive
Additional Information: No evidence of copyright restrictions on web site.
Depositing User: Dr Anil Mishra
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 12 May 2008 01:46
Last Modified: 02 Jul 2013 22:50
Uncontrolled Keywords: float; governance indicators; coordinated portfolio investment survey; rule of law
Fields of Research (FOR2008): 14 Economics > 1402 Applied Economics > 140207 Financial Economics
14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance
URI: http://eprints.usq.edu.au/id/eprint/3272

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