Proximity Bias in Investors' Portfolio Choice

Palgrave Macmillan Publishers Ltd. (ISBN: 978-3-319-54761-9 )

Posted: 18 Aug 2017

See all articles by Ted Lindblom

Ted Lindblom

Göteborg University - School of Business, Economics and Law

Taylan Mavruk

University of Gothenburg

Stefan Sjögren

University of Gothenburg - Centre for Finance - School of Business, Economics and Law

Date Written: August 15, 2017

Abstract

This book helps readers understand the widely documented distortion in the portfolio choice of individual investors toward proximate firms – the proximity bias phenomenon. First, it recapitulates the fundamentals of modern portfolio theory. It then goes on to describe and demonstrate different approaches on how to measure proximity bias and identifies and examines potential motives and reasons for such a bias. In addition, the book presents new analysis on the financial effects of individual investors' proximity bias, explaining and contributing with possible policy implications on their portfolio distortion. This book will be of interest to students and researchers, as well as decision-makers in business firms and households.

Suggested Citation

Lindblom, Ted and Mavruk, Taylan and Sjogren, Stefan, Proximity Bias in Investors' Portfolio Choice (August 15, 2017). Palgrave Macmillan Publishers Ltd. (ISBN: 978-3-319-54761-9 ), Available at SSRN: https://ssrn.com/abstract=3019449

Ted Lindblom

Göteborg University - School of Business, Economics and Law ( email )

Vasagatan 1
Goteborg, 40530
Sweden
+46317861497 (Phone)
+46317864492 (Fax)

HOME PAGE: http://www.cff.handels.gu.se/faculty-presentation/ted-lindblom/

Taylan Mavruk (Contact Author)

University of Gothenburg ( email )

Vasagatan 1
Gothenburg, 40530
Sweden

HOME PAGE: http://www.cff.handels.gu.se/faculty-presentation/taylan-mavruk/

Stefan Sjogren

University of Gothenburg - Centre for Finance - School of Business, Economics and Law ( email )

Viktoriagatan 30
Göteborg, 405 30
Sweden

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