The benefits of international diversification have been recognized for decades. In spite of
this, most investors hold nearly all of their wealth in domestic assets. In this paper, we …

Abstract Shareholders of a Regional Bell Operating Company (RBOC) tend to live in the
area which it serves, and an RBOC's customers tend to hold its shares rather than other …

This article establishes four key findings of the growing literature on experience effects in
finance:(i) the long-lasting imprint of past experiences on beliefs and risk taking;(ii) recency …

This article is Part I of a two-part series analyzing the economic and policy factors related to
the potential adoption of IFRS by the United States. In this part, we develop the conceptual …

Investors hold a substantially larger proportion of their wealth portfolios in domestic assets
than standard portfolio theory would suggest, a phenomenon called “equity home bias.” In …

As domestic sources of outside finance are limited in many countries around the world, it is
important to understand factors that influence whether foreign investors provide capital to a …

We examine how mutual funds from 26 developed and developing countries allocate their
investment between domestic and foreign equity markets and what factors determine their …

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 …

We test whether the home bias in equity portfolios is caused by investors trying to hedge
inflation risk. The empirical evidence is consistent with this motive only if investors have very …

This article develops a return-based measure of market integration for nineteen emerging
equity markets. It then examines the relation between that measure, other return …