Equity Home Bias

Author : KAVOUS. ARDALAN
Publisher : Routledge
Page : 242 pages
File Size : 47,5 Mb
Release : 2020-12-18
Category : Electronic
ISBN : 0367729199

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Equity Home Bias in International Finance by KAVOUS. ARDALAN Pdf

This book provides a comprehensive and critical analysis of research outcomes on the equity home bias puzzle - that people overinvest in domestic stocks relative to the theoretically optimal investment portfolio. It introduces place attachment - the bonding that occurs between individuals and their meaningful environments - as a new explanation for equity home bias, and presents a philosophically multi-paradigmatic view of place attachment. For the first time, a comprehensive and up-to-date review of the extant literature is provided, demonstrating that place attachment is a contributing factor to 22 different topics in which variations of home bias are present. The author also analyses the social-psychological underpinnings of place attachment, and considers the effect of multi-culturalism on the future of equity home bias. The book's unique approach discusses the issues in conceptual terms rather than through data and statistical methods. This multi- and inter-disciplinary book is an invaluable resource for graduate students and researchers interested in economics, finance, philosophy, and/or methodology, introducing them to a new line of research.

Author : Ian Cooper,Piet Sercu,Rosanne Vanpée
Publisher : Unknown
Page : 133 pages
File Size : 41,8 Mb
Release : 2013
Category : International finance
ISBN : 1601987633

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The Equity Home Bias Puzzle by Ian Cooper,Piet Sercu,Rosanne Vanpée Pdf

Home bias - the empirical phenomenon that investors assign anomalously high weights to their own domestic assets - has puzzled academics for decades: financial theory predicts that an internationally well diversified portfolio of stocks and short-term bonds can reduce risk significantly without affecting expected return. Although the globalization of international equity markets has increased international investments, equity portfolios remain severely home biased today, and no single explanation seems to solve the puzzle completely. In this paper, we first provide a thorough description of the equity home bias phenomenon by defining, discussing, and applying the competing measures and presenting some estimates of the costs of under-diversification. Second, we evaluate the explanations for the equity home bias proposed in the literature such as information asymmetries, behavioral aspects, barriers to foreign investment, and governance issues, and conclude that each explanation on its own falls short, suggesting that the equity home bias probably reflects a combination of factors. Lastly, we review the implications of international under-diversification for portfolio formation and the cost of capital of companies.

Author : Ian Cooper,Piet Sercu,Rosanne Vanpee
Publisher : Unknown
Page : 133 pages
File Size : 41,7 Mb
Release : 2013-12-01
Category : Business & Economics
ISBN : 1601987625

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The Equity Home Bias Puzzle by Ian Cooper,Piet Sercu,Rosanne Vanpee Pdf

After an introduction, this book defines the equity home bias puzzle and explains why it is important. It also reviews the two main methods used to quantify equity home bias, the positive and normative approaches, and shows how alternative home bias measures can be constructed using variations or combinations of these two methods.

Author : Kavous Ardalan
Publisher : Routledge
Page : 393 pages
File Size : 55,7 Mb
Release : 2019-05-17
Category : Business & Economics
ISBN : 9781000008272

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Equity Home Bias in International Finance by Kavous Ardalan Pdf

This book provides a comprehensive and critical analysis of research outcomes on the equity home bias puzzle – that people overinvest in domestic stocks relative to the theoretically optimal investment portfolio. It introduces place attachment – the bonding that occurs between individuals and their meaningful environments – as a new explanation for equity home bias, and presents a philosophically multi-paradigmatic view of place attachment. For the first time, a comprehensive and up-to-date review of the extant literature is provided, demonstrating that place attachment is a contributing factor to 22 different topics in which variations of home bias are present. The author also analyses the social-psychological underpinnings of place attachment, and considers the effect of multi-culturalism on the future of equity home bias. The book’s unique approach discusses the issues in conceptual terms rather than through data and statistical methods. This multi- and inter-disciplinary book is an invaluable resource for graduate students and researchers interested in economics, finance, philosophy, and/or methodology, introducing them to a new line of research.

Author : Thorsten Hens,Marc Oliver Rieger,Mei Wang
Publisher : World Scientific
Page : 573 pages
File Size : 44,7 Mb
Release : 2020-10-29
Category : Business & Economics
ISBN : 9789811221965

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Cultural Finance: A World Map Of Risk, Time And Money by Thorsten Hens,Marc Oliver Rieger,Mei Wang Pdf

This book provides a comprehensive overview of the emerging field of cultural finance. It summarizes research results of cultural differences in financial decision making and financial markets. Many of the results have been published in leading academic journals over the last ten years but some are presented here for the first time. The book is based on an international survey on risk and time preferences — the INTRA study, conducted in 53 countries worldwide. Applications to financial markets include the equity premium puzzle, the value premium, dividend payout policies and asset allocations.

Author : Reena Aggarwal,Leora Klapper
Publisher : World Bank Publications
Page : 47 pages
File Size : 43,6 Mb
Release : 2003
Category : Foreign exchange
ISBN : 8210379456XXX

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Portfolio Preferences of Foreign Institutional Investors by Reena Aggarwal,Leora Klapper Pdf

Author : Adam Hantak
Publisher : diplom.de
Page : 72 pages
File Size : 41,8 Mb
Release : 2011-10-20
Category : Business & Economics
ISBN : 9783842821538

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Equity Home Bias by Adam Hantak Pdf

Inhaltsangabe:Introduction: Every investor faces the challenge of making the right investment decisions. Upon analysing the allocation of wealth among countries, it becomes evident that investors do not invest their financial wealth internationally, but tend to invest the majority of their wealth in domestic equity. Financial theory deems this behaviour irrational, since holding a domestic portfolio is considered to be suboptimal due to the foregone benefits of international diversification. Assuming that the financial theory is right in this prediction, the question as to what are the causes for this irrational behaviour comes to mind and forms the focal point of this work. One the one hand, investors may be well aware of the costs connected with holding a domestic portfolio. Market restrictions, however, do not allow investors to attain the optimal international portfolio. On the other hand, investors may be unaware of the benefits of international diversification, and instead have a preference for domestic equity and fail to perceive the domestic portfolio as suboptimal. The traditional financial theory for this behaviour provides the institutional explanations with the focus on market imperfections and the behavioural financial theory provides explanations with the focus on investor irrationality. Following this classification of both theories, this work briefly reviews institutional explanations, as many of them lack empirical evidence and concentrates mainly on the behavioural explanations, as they are the focal point of current research and find wide empirical support. After defining equity home bias and related concepts in Chapter 2, the costs of equity home bias are discussed in Chapter 3. In Chapter 4, institutional explanations are considered. Section 4.1 reviews briefly a number of older institutional explanations, such as direct investment barriers, transactions costs and taxes, as they do not find much empirical support. Section 4.2 explores in more detail an explanation based on information asymmetry, as it may at least partially contribute to the solution of the home bias problem. With the emergence and acceptance of behavioural finance new explanations based on irrationality of investors were advanced and are presented in Chapter 5. Section 5.1 explores optimistic expectations about domestic markets as one of the early behavioural explanations. Section 5.2 deals with the competence hypothesis and creates a foundation for the [...]

Author : Kavous Ardalan
Publisher : Routledge
Page : 230 pages
File Size : 45,6 Mb
Release : 2019-05-17
Category : Business & Economics
ISBN : 9781000001433

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Equity Home Bias in International Finance by Kavous Ardalan Pdf

This book provides a comprehensive and critical analysis of research outcomes on the equity home bias puzzle – that people overinvest in domestic stocks relative to the theoretically optimal investment portfolio. It introduces place attachment – the bonding that occurs between individuals and their meaningful environments – as a new explanation for equity home bias, and presents a philosophically multi-paradigmatic view of place attachment. For the first time, a comprehensive and up-to-date review of the extant literature is provided, demonstrating that place attachment is a contributing factor to 22 different topics in which variations of home bias are present. The author also analyses the social-psychological underpinnings of place attachment, and considers the effect of multi-culturalism on the future of equity home bias. The book’s unique approach discusses the issues in conceptual terms rather than through data and statistical methods. This multi- and inter-disciplinary book is an invaluable resource for graduate students and researchers interested in economics, finance, philosophy, and/or methodology, introducing them to a new line of research.

Author : Martin Feldstein
Publisher : University of Chicago Press
Page : 500 pages
File Size : 53,9 Mb
Release : 2007-12-01
Category : Business & Economics
ISBN : 9780226241807

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International Capital Flows by Martin Feldstein Pdf

Recent changes in technology, along with the opening up of many regions previously closed to investment, have led to explosive growth in the international movement of capital. Flows from foreign direct investment and debt and equity financing can bring countries substantial gains by augmenting local savings and by improving technology and incentives. Investing companies acquire market access, lower cost inputs, and opportunities for profitable introductions of production methods in the countries where they invest. But, as was underscored recently by the economic and financial crises in several Asian countries, capital flows can also bring risks. Although there is no simple explanation of the currency crisis in Asia, it is clear that fixed exchange rates and chronic deficits increased the likelihood of a breakdown. Similarly, during the 1970s, the United States and other industrial countries loaned OPEC surpluses to borrowers in Latin America. But when the U.S. Federal Reserve raised interest rates to control soaring inflation, the result was a widespread debt moratorium in Latin America as many countries throughout the region struggled to pay the high interest on their foreign loans. International Capital Flows contains recent work by eminent scholars and practitioners on the experience of capital flows to Latin America, Asia, and eastern Europe. These papers discuss the role of banks, equity markets, and foreign direct investment in international capital flows, and the risks that investors and others face with these transactions. By focusing on capital flows' productivity and determinants, and the policy issues they raise, this collection is a valuable resource for economists, policymakers, and financial market participants.

Author : International Monetary Fund
Publisher : International Monetary Fund
Page : 180 pages
File Size : 45,6 Mb
Release : 1997-01-01
Category : Business & Economics
ISBN : 9781455216567

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Coordinated Portfolio investment Survey by International Monetary Fund Pdf

This paper presents a coordinated portfolio investment survey guide provided to assist national compilers in the conduct of the Coordinated Portfolio Investment Survey, conducted under the auspices of the IMF with reference to the year-end 1997. The guide covers a variety of conceptual issues that a country must address when conducting a survey. It also covers the practical issues associated with preparing for a national survey. These include setting a timetable, taking account of the legal and confidentiality issues raised, developing a mailing list, and maintaining quality control checks.

Author : Ms.Hali J. Edison,Mr.Francis E. Warnock
Publisher : International Monetary Fund
Page : 33 pages
File Size : 43,9 Mb
Release : 2003-12-01
Category : Business & Economics
ISBN : 9781451875768

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U.S. Investors' Emerging Market Equity Portfolios by Ms.Hali J. Edison,Mr.Francis E. Warnock Pdf

We analyze a unique data set and uncover a remarkable result that casts a new light on the home bias phenomenon. The data are comprehensive, security-level holdings of emerging market equities by U.S. investors. We document, as expected, that at a point in time U.S. portfolios are tilted towards firms that are large, have fewer restrictions on foreign ownership, or are cross-listed on a U.S. exchange. The size of the cross-listing effect is striking. In contrast to the well-documented underweighting of foreign stocks, emerging market equities that are cross-listed on a U.S. exchange are incorporated into U.S. portfolios at full international capital asset pricing model (CAPM) weights. Our results suggest that information asymmetries play an important role in equity home bias and that the benefits of international risk sharing are limited to select firms.

Author : Jennifer Schneider
Publisher : Peter Lang Gmbh, Internationaler Verlag Der Wissenschaften
Page : 218 pages
File Size : 50,6 Mb
Release : 2013
Category : Business & Economics
ISBN : 3631639740

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European Business Cycle Convergence by Jennifer Schneider Pdf

Is the euro area getting closer with regard to business cycles? The study investigates the linkage between business cycle convergence and financial portfolio choice for a panel of 18 European countries. For this purpose an index is constructed which measures the similarity of investment portfolios. The idea is that financial portfolio choice has an impact on business cycles and contributes to convergence via the consumption-wealth linkage. The background of the analysis is the International Asset Pricing Model (IAPM). The results of fixed effects GMM TSLS estimations confirm the linkage. The effect is higher for country-pairs that are built by one euro area member and one member outside the euro area.

Author : Sheldon L. Eakins
Publisher : John Wiley & Sons
Page : 259 pages
File Size : 43,6 Mb
Release : 2022-06-13
Category : Education
ISBN : 9781119840985

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Leading Equity by Sheldon L. Eakins Pdf

Transform your school and your classroom with these best practices in equity That the typical modern classroom lacks equity will come as no surprise to many educators. But few resources explain how to remedy that situation in the here and now. Leading Equity delivers an eye-opening and actionable discussion of how to transform a classroom or school into a more equitable place. Through explorations of ten concrete steps that you can take right now, Dr. Sheldon L. Eakins offers you the skills, resources, and concepts you'll need to address common equity deficiencies in education. You'll learn about: Things you can do today to advance the cause of equity in your classroom, from reconsidering your language choices to getting to know yourself and your students Using social justice as the basis for your advocacy for equity How to promote a decolonial atmosphere and model vulnerability and humility for your students and colleagues Ideal for educators and educational leaders at all stages of their careers, Leading Equity will help you improve your ability to offer an equitable environment to all of your students.

Author : Steven Ranson,Yvonne Ziomecki
Publisher : FriesenPress
Page : 259 pages
File Size : 45,5 Mb
Release : 2021-08-20
Category : Business & Economics
ISBN : 9781525599309

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Home Run by Steven Ranson,Yvonne Ziomecki Pdf

In this easy-to-understand book, HomeEquity Bank CEO Steven Ranson and Executive Vice President Yvonne Ziomecki discuss the ins and outs of reverse mortgages and how they can provide Canadians 55+ with a secure retirement.

Author : Ted Lindblom,Taylan Mavruk,Stefan Sjögren
Publisher : Springer
Page : 291 pages
File Size : 50,5 Mb
Release : 2017-08-06
Category : Business & Economics
ISBN : 9783319547626

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Proximity Bias in Investors’ Portfolio Choice by Ted Lindblom,Taylan Mavruk,Stefan Sjögren Pdf

This book helps readers understand the widely documented distortion in the portfolio choice of individual investors toward proximate firms – the proximity bias phenomenon. First, it recapitulates the fundamentals of modern portfolio theory. It then goes on to describe and demonstrate different approaches on how to measure proximity bias and identifies and examines potential motives and reasons for such a bias. In addition, the book presents new analysis on the financial effects of individual investors’ proximity bias, explaining and contributing with possible policy implications on their portfolio distortion. This book will be of interest to students and researchers, as well as decision-makers in business firms and households.