The determinates of equity portfolio holdings

• Autores: Jonathan A. Batten, Xuan Vinh Vo
• Localización: Applied financial economics, ISSN 0960-3107, Vol. 20, Nº. 13-15, 2010, págs. 1125-1132
• Idioma: inglés
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• Resumen

  • The investor preference for home assets rather than a diversified portfolio of international assets termed 'home bias' remains a puzzle, given recent information and technology improvements, although presumed risk reduction benefits may have been reduced through improved financial market integration. This article investigates the effect of various barriers to international investment on Australian equity portfolio investment and confirms the common view that higher transaction costs impede international investment, although market liquidity, market size and common language are also important factors.