Domestic and Foreign Country Bias in International Equity Portfolios

Diyarbakirlioglu, Erkin

doi:10.2139/ssrn.1648467

Cited by 4 publications

(7 citation statements)

References 39 publications

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“…Chan et al (2005); Baele at al. (2007), Diyarbakırlıoğlu (2011), Thapa and Poshakwale (2012) and Thapa at al. (2013) revealed the relation between GDP and home bias.…”

Section: Economic Developmentmentioning

confidence: 96%

“…Geographical distance: We also include the log of the geographic distance (in kilometers) between the capital cities of Turkey and the host countries as the second familiarity variable. Portes and Rey (2005), Beugelsdijk and Frijns (2010), Batten and Vo (2010), Diyarbakırlıoğlu (2011), Mishra (2011) and Daly and Vo (2013) show that distance is a good proxy for information cost. Data on geographical distance are obtained from a distance calculator (www.geobytes.com).…”

Section: Familiaritymentioning

confidence: 98%

“…Cultural distance: In this paper we utilize a traditional cultural distance measure proposed by Kogut and Singh (1988) based upon the Hofstede's scores for the dimensions of cultures as in a number of studies (Beugelsdijk and Frijns, 2010;Anderson et al 2011 andDiyarbakırlıoğlu, 2011) examining the impact of cultural factors on home bias. Turkey's cultural distance from its target markets was formed based on Hofstede's four primary cultural dimensions; power distance, uncertainty avoidance, masculinity and individualism 7 as per Kogut and Singh's (1988) original index.…”

Section: Cultural Factorsmentioning

confidence: 99%

“…Investor rights protection: The second corporate governance measure we use is the investor rights protection measure provided by the World Bank Doing Business (www.doingbusiness.org). Diyarbakırlıoğlu (2011) use the same investor protection index too. This variable is expected to be negatively related to the home bias as investors would prefer investing in those countries which provide better investor protection with stronger shareholders' rights and legal frameworks.…”

Section: Corporate Governancementioning

confidence: 99%

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Türkiye’nin Hisse Senedi Yerel Yatırım Taraflılığının Belirleyicileri

Şahin¹,

Doğukanlı²,

Şengül³

2016

Muhasebe Ve Finansman Dergisi

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“…Chan et al (2005); Baele at al. (2007), Diyarbakırlıoğlu (2011), Thapa and Poshakwale (2012) and Thapa at al. (2013) revealed the relation between GDP and home bias.…”

Section: Economic Developmentmentioning

confidence: 96%

Section: Familiaritymentioning

confidence: 98%

Section: Cultural Factorsmentioning

confidence: 99%

Section: Corporate Governancementioning

confidence: 99%

See 2 more Smart Citations

Türkiye’nin Hisse Senedi Yerel Yatırım Taraflılığının Belirleyicileri

Şahin¹,

Doğukanlı²,

Şengül³

2016

Muhasebe Ve Finansman Dergisi

View full text Add to dashboard Cite

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“…Relating to different asset types, the existence of a home bias has been underlined for equities (Bradshaw et al 2004 ; Diyarbakirlioglu 2011 ; Tesar and Werner 1995 ), bonds (Fidora et al 2007 ; Solnik and Zuo 2016 ; Tse 1999 ; Ferreira and Miguel 2011 ; Tesar and Werner 1995 ), real estate (Imazeki and Gallimore 2009 ; Eichholtz et al 2001 ) and mutual funds (Coval and Moskowitz 1999 ; Giannetti and Laeven 2016 ; Lütje and Menkhoff 2007 ; Oehler et al 2008 ).…”

Section: Empirical Evidence and Measures For Home And Local Biasmentioning

confidence: 99%

The home bias and the local bias: A survey

2020

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The home bias like the disposition effect is a well-researched economic phenomenon in investor behaviour which has been examined in finance journal articles for decades. While there is little doubt about the existence of the bias, its magnitude varies across countries and investor groups. The home bias has to be regarded as a multifactorial phenomenon, a combination of numerous causes which all synergistically contribute. In contrast to other biases the home bias can at least partially be explained by reasons beyond irrational investor behaviour. While institutional restrictions play a minor role, informational asymmetries and superior information of domestic investors are important factors. Thus, the performance of investments may well benefit from a home bias, and the bias then no longer would be a puzzle but rather rational behaviour as a lower diversification level may lead to higher returns. The contemporary understanding of the home bias gains in relevance as the ongoing political debate in Germany has to clarify an institutional framework for long-run retirement savings plans of private households based on equity investments.

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Is Local Bias a Cross-Border Phenomenon? Evidence from Individual Investors’ International Asset Allocation

Baltzer

Stolper²

2012

SSRN Journal

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Domestic and Foreign Country Bias in International Equity Portfolios

Cited by 4 publications

References 39 publications

Türkiye’nin Hisse Senedi Yerel Yatırım Taraflılığının Belirleyicileri

Türkiye’nin Hisse Senedi Yerel Yatırım Taraflılığının Belirleyicileri

The home bias and the local bias: A survey

Is Local Bias a Cross-Border Phenomenon? Evidence from Individual Investors’ International Asset Allocation

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