Familiarity Breeds Investment

By Gur Huberman. 2001

1,848 citations recorded by the source corpus.

Subfields: Accounting, Economics and Econometrics, Finance

View Paper: https://www.semanticscholar.org/paper/6f4cd2de8577cbf3c52c8ca04dc9d09312f05878

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Citations in the corpus

Model Misspecification and Under-Diversification (2003, neutral): “gional Bell Operating Company ( Huberman, 2001 ); workers tend to hold their own company’s”
The Only Game in Town: Stock-Price Consequences of Local Bias (2008, background): “This bias shows up not only as a preference for domestic as opposed to foreign stocks (French and Poterba, 1991; Cooper and Kaplanis, 1994), but perhaps more strikingly, as a preference for those domestic stocks that are headquartered close by (Coval and Moskowitz, 1999; Grinblatt and Keloharju, 200”
Home Bias in International Equity Portfolios: A Review (2007, background): “Investors are more familiar with domestic stocks and feel a general sense of discomfort or even fear towards foreign assets (Huberman, 2001).”
Consumer resistance and inertia of retail investors: Development of the resistance adoption inertia continuance (RAIC) framework (2020, positive): “…contribute to investors ’ resistance, and here, inertia includes belief, moods, emotions, and attitude (Allen and Evans, 2005; Banks et al., 2015; Huberman, 2001; Murphy et al., 2016); (c) individual factors: these include financial sophistication, self-ability to manage portfolio,…”
Is the crowd sensitive to distance?—how investment decisions differ by investor type (2017, positive): “…costs (Coval and Moskowitz 2001); (2) ambiguity aversion of investors, who subjectively prefer more tangible information that will result in more visible and Bfamiliarity-biased^ investments (Huberman 2002; Franke et al. 2006); and (3) overoptimism toward Bhome^ assets (Lai and Teo 2008).”
The Local Bias of Individual Investors (2002, positive): “In particular, I test whetehr the local bias may be due to informational advantage, suggested by Coval and Moskowitz (1999), or to a familiarity bias, consistent with Huberman (2001).”
Distance, Lending Relationships and Competition (2005, positive): “International capital flows seem bound by geographical proximity (Portes and Rey (2001)), but so are the composition and returns on actively managed U.S. mutual funds (Coval and Moskowitz (2001)), the trading profitability of traders on the German electronic exchange Xetra (Hau (2001)), and the port”
Taste, information, and asset prices: implications for the valuation of CSR (2016, neutral): “The investment ‘‘home bias’’ is a pervasive phenomenon, whereby investors prefer to invest in local stocks rather than foreign or distant stocks (e.g., Coval and Moskowitz 1999; Huberman 2001).”
A Welfare Criterion For Models With Distorted Beliefs (2014, background): “Consistent with this example, Gilchrist, Himmelberg, and Huberman (2005) provide evidence that rms tend to increase investment in response 11Given the presence of the rms investment decision, it is important to restrict the set of reasonable beliefs to the convex combinations of agentsbeliefs.”