Equity Home Bias: Can Information Cost Explain the Puzzle?

Abstract

losses of one particular stock can be offset with gainsfrom another; for example, losses from the recentbad performance in technology stocks might havebeen cushioned by the strong gains of oil companies.The increasingly integrated international financialmarkets offer one such opportunity for diversifica-tion. Investors could significantly reduce their riskexposure if they held a portion of their asset port-folio in foreign stocks. Surprisingly, investors in allmajor industrialized countries do not exploit this risk-sharing opportunity but instead hold large shares oftheir portfolio in domestic stocks. This tendency isnamed

Cite this work

No public copy is stored for this record, so only the metadata is cited.

Stored only when both papers are in the corpus — 71 citations exist upstream.

Papers that cite the same references — the relational fallback while embeddings are still backfilling.