This paper surveys the literature on the geography of financial activity in order to assess the
role of financial centres. While there is widespread concern that rapid technological progess …

Publisher Summary This chapter discusses that if investment and consumption opportunity
sets do not differ across countries, the fact that countries use different currencies has no …

This paper studies stock ownership in Japanese firms by non-Japanese investors from 1975
to 1991. Existing models predicting that foreign investors hold national market portfolios or …

This paper documents the available evidence on international portfolio investment in five
OECD countries. We draw three conclusions from the data. First, there is strong evidence of …

We test extant hypotheses of the home bias in equity holdings using high quality cross-
border holdings data and quantitative measures of barriers to international investment. The …

It is widely thought that incomes risks can be shared by trading in financial assets. But
financial assets typically carry some risk idiosyncratic to them, hence, disposing incomes risk …

This article provides a theory of foreign equity investment restrictions. We consider a model
where the demand function for domestic shares differs between domestic and foreign …

The eleventh edition of Multinational Financial Management is a comprehensive survey of
the essential areas of the international financial market environment, including foreign …

Market microstructure deals with the purest form of financial intermediation–the trading of a
financial asset, such as a stock or a bond. In a trading market, assets are not transformed but …

We investigate, in a two‐country general equilibrium model, whether a bias in consumption
towards domestic goods will necessarily lead to a preference for domestic securities. We …