Home Bias and Cross Border Taxation

This paper constructs the float adjusted measure of home bias and explores the determinants of bond home bias by employing the International Monetary Fund's high quality dataset (2001 to 2009) on cross-border bond investment. The paper finds that Australian investors' prefer investing in countries with higher economic development and more developed bond markets. Exchange rate volatility appears to be an impediment for cross-border bond investment. Investors prefer investing in countries with stronger quality of institutions including bureaucratic quality, government effectiveness, regulatory quality, rule of law, efficiency of judicial system, risk of contract repudiation, and rating of accounting standards.

Download Full-text

Capital Market Integration in Euroland: The Role of Banks

German Economic Review ◽

10.1111/1468-0475.00021 ◽

2000 ◽

Vol 1 (4) ◽

pp. 443-464 ◽

Cited By ~ 5

Author(s):

Claudia M. Buch

Keyword(s):

Financial Market ◽

Risk Taking ◽

Capital Market ◽

Market Integration ◽

Home Bias ◽

Capital Market Integration ◽

Clear Cut ◽

Cross Border ◽

Financial Market Integration

Abstract The introduction of the euro marks a milestone in the process of European financial market integration. This paper analyzes the implications of the euro for cross-border banking activities. A portfolio model is used which captures the role of banks as providers of informational and of risk-diversification services. By eliminating exchange rate risks, the euro enhances the incentives of banks to expand within Euroland. Yet, while the currency bias in bank portfolios will be eliminated, the home bias will remain. Implications of market integration for the risk-taking and the monitoring of banks are not clear-cut.

Download Full-text

Home Bias at Selecting Financial Advisors in Cross-Border M&As

SSRN Electronic Journal ◽

10.2139/ssrn.1247122 ◽

2008 ◽

Author(s):

Bill B. Francis ◽

Iftekhar Hasan ◽

Xian Sun

Keyword(s):

Home Bias ◽

Financial Advisors ◽

Cross Border

Download Full-text

Home bias and cross border taxation

Journal of International Money and Finance ◽

10.1016/j.jimonfin.2012.04.004 ◽

2013 ◽

Vol 32 ◽

pp. 169-193 ◽

Cited By ~ 15

Author(s):

Anil V. Mishra ◽

Ronald A. Ratti

Keyword(s):

Home Bias ◽

Cross Border

Download Full-text

Equity crowdfunding across borders: a conjoint experiment

International Journal of Entrepreneurial Behaviour & Research ◽

10.1108/ijebr-07-2017-0256 ◽

2018 ◽

Vol 24 (4) ◽

pp. 911-932 ◽

Cited By ~ 17

Author(s):

Thomas Niemand ◽

Martin Angerer ◽

Ferdinand Thies ◽

Sascha Kraus ◽

René Hebenstreit

Keyword(s):

Decision Making ◽

Foreign Currency ◽

Home Bias ◽

Legal Framework ◽

Content Type ◽

Cross Border ◽

Equity Crowdfunding ◽

First Choice ◽

Apparent Influence ◽

The Eu

Purpose The purpose of this paper is to identify and disentangle the home bias in equity crowdfunding to better understand irrational decision making of investors. Design/methodology/approach A first choice-based conjoint (CBC) experiment with 217 participants was conducted in central Europe in order to single out different factors contributing to an apparent home bias of capital providers. Findings The authors find that investors show an avoidance of foreign currency, while payment methods seem to have no considerable influence on the decision making. Furthermore, participants significantly decided against national legislation in favor for EU legislation. Research limitations/implications This study predominantly helps to gain deeper insights into influencing factors in crowdfunding markets with a special concern on a cross-border context. For capital-seeking companies, the home bias of potential investor has to be taken into account, when designing a crowdfunding campaign. For legislators, the apparent influence of the legal framework should serve as a wake-up call to consolidate the regulation of crowdfunding in the EU. Originality/value This is the first CBC experiment application in a cross-border crowdfunding context. It provides deeper understanding of the importance of geographical proximity between crowdfunding projects and investors and calls for further research to examine how such an effect could be diminished.

Download Full-text