Understanding the Equity Home Bias: Evidence from Survey Data
Lancaster University Management School, Department of Accounting and Finance Working Paper No. 99/017
18 Pages
Posted: 9 Dec 1999
University of Manchester - Manchester Business School
Peking University - Guanghua School of Management
Date Written: June 1999
Abstract
This study uses survey data of fund managers? views on prospects for international equity markerts to shed light on why investment portfolios are signnificantly biased towards domestic equities. We find that fund managers from the US, the UK, Continental Europe, and Japan show a significant comparative optimism towards their home equity market. Where institutional factors have largely failed to explain the equity home bias puzzle, our evidence lends support to behavioural explanations of the bias.
JEL Classification: D84, F30, G15
Suggested Citation:
Suggested Citation
Strong, Norman C. and Xu, Xinzhong, Understanding the Equity Home Bias: Evidence from Survey Data (June 1999). Lancaster University Management School, Department of Accounting and Finance Working Paper No. 99/017. Available at SSRN: https://ssrn.com/abstract=191401 or http://dx.doi.org/10.2139/ssrn.191401
