Mishra, Anil V. (2008) Australia's equity home bias. Australian Economic Papers, 47 (1). pp. 53-73. ISSN 0004-900X
Abstract
This paper constructs the float adjusted measure of home bias and explores the determinants of Australia’s equity home bias by employing the International Monetary Fund’s high quality dataset (2001 to 2005) on cross border equity investment. On the empirical front, the paper conducts robustness tests by employing instrumental variables that are standard in the financial economics literature. The paper finds that the share of the number of firms listed in the domestic market and the share of internet users in the total population of the host country has a significant impact on equity home bias. Trade linkages are found to have a mixed impact on equity home bias. The paper also finds that the country’s market share of the world market capitalisation and transaction costs do not impact Australia’s equity home bias. Investors are found to exhibit low diversification motives.
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| Item Type: | Article (Commonwealth Reporting Category C) |
|---|---|
| Refereed: | Yes |
| Item Status: | Live Archive |
| Additional Information: | Deposited in accordance with the copyright policy of the publisher. The definitive version is available at the URL above at www.blackwell-synergy.com |
| Faculty/School / Institute/Centre: | Historic - Faculty of Business - School of Accounting, Economics and Finance (1 Apr 2007 - 31 Dec 2010) |
| Faculty/School / Institute/Centre: | Historic - Faculty of Business - School of Accounting, Economics and Finance (1 Apr 2007 - 31 Dec 2010) |
| Date Deposited: | 03 Jun 2008 05:50 |
| Last Modified: | 02 Jul 2013 23:02 |
| Uncontrolled Keywords: | coordinated portfolio investment survey; float; instrumental variables |
| Fields of Research (2008): | 15 Commerce, Management, Tourism and Services > 1502 Banking, Finance and Investment > 150205 Investment and Risk Management 14 Economics > 1402 Applied Economics > 140210 International Economics and International Finance 14 Economics > 1402 Applied Economics > 140207 Financial Economics |
| Fields of Research (2020): | 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350208 Investment and risk management 38 ECONOMICS > 3801 Applied economics > 380110 International economics 38 ECONOMICS > 3801 Applied economics > 380107 Financial economics |
| Socio-Economic Objectives (2008): | B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910109 Savings and Investments |
| Identification Number or DOI: | https://doi.org/10.1111/j.1467-8454.2008.00329.x |
| URI: | http://eprints.usq.edu.au/id/eprint/4129 |
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