Who Invests in What? Public Firms Ownership Around the World

79 Pages Posted: 5 Feb 2024

See all articles by Ines Chaieb

Ines Chaieb

University of Geneva - Geneva Finance Research Institute (GFRI); Swiss Finance Institute

Vihang R. Errunza

McGill University - Desautels Faculty of Management

Lucie Y. Lu

University of Melbourne, Faculty of Business and Economics

Date Written: January 17, 2024

Abstract

We construct a comprehensive database of public firm ownership in 49 countries and study the investment scope and preferences of different types of investors. Aggregate home bias has declined but is still much higher in emerging markets (EMs). Institutions have become more globally diversified but invest in a limited number of stocks. Retail investors remain highly home-biased. Institutions of different domiciles and types continue to show a strong preference for larger, more liquid, and more visible firms in both pooled regressions and country-level analyses but exhibit considerably heterogeneous preferences for other firm characteristics. Retail investors are mostly present in small and illiquid firms.

Keywords: Institutional investors, emerging markets, international diversification

JEL Classification: G15, G23, G32

Suggested Citation

Chaieb, Ines and Errunza, Vihang R. and Lu, Lucie Yiliu, Who Invests in What? Public Firms Ownership Around the World (January 17, 2024). Available at SSRN: https://ssrn.com/abstract=4697585 or http://dx.doi.org/10.2139/ssrn.4697585

Ines Chaieb

University of Geneva - Geneva Finance Research Institute (GFRI) ( email )

40 Boulevard du Pont d'Arve
Geneva 4, Geneva 1211
Switzerland
+41223798568 (Phone)

Swiss Finance Institute

c/o University of Geneva
40, Bd du Pont-d'Arve
CH-1211 Geneva 4
Switzerland

Vihang R. Errunza

McGill University - Desautels Faculty of Management ( email )

1001 Sherbrooke St. West
Montreal, Quebec H3A1G5 H3A 2M1
Canada
514-398-4056 (Phone)
514-398-3876 (Fax)

Lucie Yiliu Lu (Contact Author)

University of Melbourne, Faculty of Business and Economics ( email )

198 Berkeley Street
Parkville, Victoria 3053
Australia

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