Understanding the Equity Home Bias: Evidence from Survey Data

By Norman Strong, Xinzhong Xu. Review of Economics and Statistics, 2003

237 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/216bb2a49e505c2b8446da0d4e915755e9b3f8e6

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Citations in the corpus

Fear of the Unknown: Familiarity and Economic Decisions (2007, background): “Both individuals and portfolio managers have more pessimistic expectations about foreign stocks than about domestic stocks (Shiller, Konya, and Tsutsui, 1996; Strong and Xu, 2003; Kilka and Weber, 2000).”
The Dynamics of International Equity Market Expectations (2003, background): “3 trillion reported by Solnik and McLeavey (2003). The surveys are normally conducted over a period of up to 10 days during the first two weeks of each month.”
Subjective measures of risk aversion, fixed costs, and portfolio choice (2011, unknown): “…(Ahearne et al., 2004; Choe et al., 2005; Dvorak, 2005), transparency in international markets (Gelon and Wei, 2005), trust (Guiso et al., 2008), real exchange rate volatility (Fidora et al., 2007), behavioral biases (Strong and Xu, 2003), and investors’ financial illiteracy (Graham et al., 2005).”
Beyond Correlation: Extreme Co-movements Between Financial Assets (2002, unknown): “This coupling of international markets also suggests a partial explanation for the " investor home bias puzzle " [see, e.g., the literature review in Strong and Xu (2002)].”
A Two-Person Dynamic Equilibrium under Ambiguity (2003, background): “JEL classi#cation: D81; G11; G12; G15 Keywords: Ambiguity; Home bias; Continuous-time; Dynamic general equilibrium; Ellsberg Paradox; Knightian uncertainty; Asset returns; Heterogenous-agent economies”
Financial Globalization, Governance, and the Evolution of the Home Bias (2006, background): “That literature predicts that insider ownership should be more concentrated when agency problems between those who control corporations and outside investors are stronger (see, 1 See Lewis (1999) and Karolyi and Stulz (2003) for reviews of the literature on home bias in equity portfolios.”
Local Overweighting and Underperformance: Evidence from Limited Partner Private Equity Investments (2013, background): “9 Other related work in this includes Strong and Xu (2003), who find that international home bias is a function of optimistic attitudes about home country performance, and Graham, Harvey and Huang (2009), who show that local bias is correlated with lower self-confidence regarding investment…”
Home Bias in Online Investments: An Empirical Study of an Online Crowdfunding Market (2016, unknown): “Other researchers have taken a behavioral approach and identified over-optimism toward home equity markets in survey data (Lai and Teo 2008, Strong and Xu 2003), which may have resulted in home bias as well.”
Reward-based crowdfunding of entrepreneurial projects: the effect of local altruism and localized social capital on proponents’ success (2017, unknown): “Finally, the sociological literature on homophily (McPherson et al. 2001) suggests that geographical proximity breeds trust and over-optimism about transaction partners or opportunities in local areas (see e.g., Strong and Xu 2003).”
Handbook of Consumer Finance Research (2008, background): “Retail investors and fund managers tend to exhibit a home-country bias (Strong & Xu, 2003 ; Uppal, 1992 ).”