scholarly journals The Determinants of International Portfolio Holdings and Home Bias

2004 ◽  
Author(s):  
Hamid Faruqee ◽  
Isabel Kitming Yan
Keyword(s):  
Home Bias ◽  
Portfolio Holdings ◽  
International Portfolio

scholarly journals The Determinants of International Portfolio Holdings and Home Bias

2004 ◽  
Vol 04 (34) ◽  
pp. 1 ◽  
Author(s):  
Shujing Li ◽  
Hamid Faruqee ◽  
Isabel K. Yan ◽  
◽  
◽  
...  
Keyword(s):  
Home Bias ◽  
Portfolio Holdings ◽  
International Portfolio

scholarly journals The Coming Wave: Where Do Emerging Market Investors Put Their Money?

2019 ◽  
Vol 55 (4) ◽  
pp. 1369-1414 ◽  
Author(s):  
G. Andrew Karolyi ◽  
David T. Ng ◽  
Eswar S. Prasad
Keyword(s):  
Emerging Market ◽  
Explanatory Power ◽  
Foreign Market ◽  
Trade Flows ◽  
Foreign Country ◽  
Portfolio Holdings ◽  
Level Data ◽  
International Portfolio ◽  
Information Advantage ◽  
Parent Companies

Using country- and institution-level data, we find that the “coming wave” of emerging- market (EM) investors systematically over- or underweight their equity portfolio holdings in a way that reflects the influences of past capital and trade flows from a foreign country. We interpret this finding as support for van Nieuwerburgh and Veldkamp (2009) information endowment hypothesis. Strong past capital and trade flows create an information advantage that leads EM investors to disproportionately overweight a given foreign market, even relative to developed market investor counterparts. We also pursue predictions of the information endowment hypothesis by constructing novel information-advantage proxies based on relationships among investment firms and the headquarters of their parent companies. These proxies also offer reliable explanatory power for international portfolio allocations.

Mandatory IFRS Adoption and the U.S. Home Bias

2011 ◽  
Vol 25 (4) ◽  
pp. 729-753 ◽  
Author(s):  
Inder K. Khurana ◽  
Paul N. Michas
Keyword(s):  
Fixed Effects ◽  
Home Bias ◽  
Accounting Standards ◽  
Data Availability ◽  
Portfolio Holdings ◽  
Ifrs Adoption ◽  
Stock Portfolios ◽  
Country Level ◽  
Key Factor ◽  
The U.S

SYNOPSIS This paper examines whether mandatory IFRS adoption at the country level lowers U.S. investors' propensity to overweight domestic stocks in their common stock portfolios (generally referred to as home bias). We find that, on average, U.S. home bias decreases for countries that mandate IFRS adoption, after controlling for country-fixed effects. We also find that the reduction in the U.S. home bias after the mandatory adoption of IFRS is greater for countries with larger differences between IFRS and their domestic accounting standards, for countries with a stricter rule of law and a common law legal origin, and in countries with greater incentives to report high-quality financial information. Overall, our results indicate that a common set of global accounting standards matters for portfolio holdings of U.S. investors and that U.S. investors regard the enforcement of standards to be a key factor in making investments outside the U.S. Data Availability: Data are publicly available.

Financial liberalization and patterns of international portfolio holdings

2014 ◽  
Vol 49 (1) ◽  
pp. 213-234 ◽  
Author(s):  
Pedro de Araujo ◽  
Olena Mykhaylova ◽  
James Staveley-O’Carroll
Keyword(s):  
Financial Liberalization ◽  
Portfolio Holdings ◽  
International Portfolio

scholarly journals Beyond Home Bias: Portfolio Holdings and Information Heterogeneity

2017 ◽  
Author(s):  
Filippo De Marco ◽  
Marco Macchiavelli ◽  
Rosen Valchev
Keyword(s):  
Home Bias ◽  
Portfolio Holdings ◽  
Information Heterogeneity
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