The effects of portfolio size on international equity home bias puzzle

Authors

Jinlan Ni, University of Nebraska at OmahaFollow

Author ORCID Identifier

Jinlan Ni

Document Type

Article

Publication Date

6-2009

Publication Title

International Review of Economics & Finance

Volume

18

Issue

3

First Page

469

Last Page

478

Abstract

This paper investigates a new explanation for the international equity home bias puzzle based on an endogenous asymmetric information model. Using a cross-sectional mutual fund data set, it is found that the degrees of home bias across fund managers are negatively correlated to the asset sizes under their management. This result is consistent with the theoretical prediction in the endogenous asymmetric information model—the portfolio managers with the larger assets tend to acquire more information regarding foreign equity and, hence, hold more foreign equity holdings.

Comments

https://doi.org/10.1016/j.iref.2008.03.001

Recommended Citation

Ni, Jinlan, "The effects of portfolio size on international equity home bias puzzle" (2009). Economics Faculty Publications. 55.
https://digitalcommons.unomaha.edu/econrealestatefacpub/55

Creative Commons License

This work is licensed under a Creative Commons Attribution-Noncommercial-No Derivative Works 4.0 License.