Confidence in the Familiar: An International Perspective
Investors have long exhibited a “home country bias” whereby they hold more shares of firms from their own country than would seem warranted based off of typical diversification theory. This seeming anomaly has been partially explained in many ways (my favorite is Butler’s view that when markets fall, the correlation is actually greater than the long run correlation, hence overstating the value of diversification). … [ Read more ]
Content: Article | Author: Kai Li | Source: Social Science Research Network (SSRN) | Subjects: Finance, International | Industry: Investment Banking