International investors' home bias in portfolio equity investment

Mishra, Anil V. (2007) International investors' home bias in portfolio equity investment. In: 14th Global Finance Conference, 1-4 April 2007, Melbourne.


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This paper utilizes International Monetary Fund’s high quality dataset over the period from 2001 to 2004, to investigate the determinants of home bias in the international context. This paper contributes to the existing literature by using float adjusted measure of home bias for 38 countries. Information asymmetries arising due to countries’ regulatory and legal environment have significant impact on home bias.Foreign listing is found to alleviate home bias.
International investors exhibit a preference for nearby and same language countries.Capital controls, trade links and risk adjusted returns are found to significantly affect
equity home bias. Transaction costs do not have a significant impact on the equity home bias.

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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.
Faculty / Department / School: Historic - Faculty of Business - School of Accounting, Economics and Finance
Date Deposited: 11 Oct 2007 00:58
Last Modified: 02 Jul 2013 22:42
Uncontrolled Keywords: governance indicators; coordinated portfolio investment survey; float world market portfolio
Fields of Research : 14 Economics > 1402 Applied Economics > 140207 Financial Economics
14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance

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