This paper reviews the relatively more recent literature on equity home bias–the empirical
finding that people overinvest in domestic stocks relative to the optimal investment portfolio …

This paper reviews the recent literature on equity home bias-the empirical finding that
people over invest in domestic stocks relative to the theoretically optimal investment …

Home bias is a perennial feature of international capital markets. We review various
explanations of this puzzling phenomenon highlighting recent developments in …

Home bias–the empirical phenomenon that investors assign anomalously high weights to
their own domestic assets–has puzzled academics for decades: financial theory predicts that …

This paper presents a model of international portfolios with real exchange rate and non-
financial risks that account for observed levels of equity home bias. Bonds matter: in …

We provide direct evidence on the effect of financial expertise on investment outcomes by
analyzing private portfolios of mutual fund managers. We find no evidence that financial …

The paper develops measures of home bias for 42 countries over the period 2001 to 2011
by employing various models: international capital asset pricing model (ICAPM), classical …

The literature on international equity holdings distinguishes between home bias
(overweighting of home stocks) and foreign bias (relative underweighting for more “distant” …

The relationship between cross border taxation and free float home bias is examined. This
explicitly recognizes that insider shares are unavailable to foreigners. Other important …

Home bias in investments (a major puzzle in international economics) is important because
it can lead to inefficient portfolios, reduction of international trade, and exacerbation of …