Australian investors' home bias in portfolio equity investment

Anil V. Mishra

Australian investors' home bias in portfolio equity investment

School of Business

Research output: Chapter in Book / Conference Paper › Conference Paper

Abstract

This paper employs International Monetary Fund's high quality cross-border equity holdings dataset to investigate the determinants of home bias puzzle in the Australian context. This paper indicates that the share of destination countries' stock market that is invested in Australia and transaction costs have significant impact on the home bias puzzle. Capital controls and trade links also impact the home bias puzzle; however their effect is insignificant. This paper also employs World Bank's governance indicators and other legal variables to investigate the phenomenon of home bias. Information asymmetries arising due to countries' regulatory and legal environment have significant impact on the home bias puzzle.

Original language	English
Title of host publication	Proceedings of the 35th Australian Conference of Economists, 25-27 Sept 2006, Perth, Australia
Publisher	ACE
Number of pages	26
Publication status	Published - 2006
Event	Australian Conference of Economists - Duration: 8 Jul 2012 → …

Conference

Conference	Australian Conference of Economists
Period	8/07/12 → …

Keywords

capital movements
investments
rule of law
governance indicators
home bias
Australia

UN SDGs

This output contributes to the following UN Sustainable Development Goals (SDGs)

Cite this

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title = "Australian investors' home bias in portfolio equity investment",

abstract = "This paper employs International Monetary Fund's high quality cross-border equity holdings dataset to investigate the determinants of home bias puzzle in the Australian context. This paper indicates that the share of destination countries' stock market that is invested in Australia and transaction costs have significant impact on the home bias puzzle. Capital controls and trade links also impact the home bias puzzle; however their effect is insignificant. This paper also employs World Bank's governance indicators and other legal variables to investigate the phenomenon of home bias. Information asymmetries arising due to countries' regulatory and legal environment have significant impact on the home bias puzzle.",

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year = "2006",

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PY - 2006

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N2 - This paper employs International Monetary Fund's high quality cross-border equity holdings dataset to investigate the determinants of home bias puzzle in the Australian context. This paper indicates that the share of destination countries' stock market that is invested in Australia and transaction costs have significant impact on the home bias puzzle. Capital controls and trade links also impact the home bias puzzle; however their effect is insignificant. This paper also employs World Bank's governance indicators and other legal variables to investigate the phenomenon of home bias. Information asymmetries arising due to countries' regulatory and legal environment have significant impact on the home bias puzzle.

AB - This paper employs International Monetary Fund's high quality cross-border equity holdings dataset to investigate the determinants of home bias puzzle in the Australian context. This paper indicates that the share of destination countries' stock market that is invested in Australia and transaction costs have significant impact on the home bias puzzle. Capital controls and trade links also impact the home bias puzzle; however their effect is insignificant. This paper also employs World Bank's governance indicators and other legal variables to investigate the phenomenon of home bias. Information asymmetries arising due to countries' regulatory and legal environment have significant impact on the home bias puzzle.

KW - capital movements

KW - investments

KW - rule of law

KW - governance indicators

KW - home bias

KW - Australia

UR - http://handle.uws.edu.au:8081/1959.7/489158

M3 - Conference Paper

BT - Proceedings of the 35th Australian Conference of Economists, 25-27 Sept 2006, Perth, Australia

PB - ACE

T2 - Australian Conference of Economists

Y2 - 8 July 2012

ER -

Australian investors' home bias in portfolio equity investment

Abstract

Conference

Keywords

UN SDGs

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