Does Asymmetric Information Cause the Home Equity Bias?

Does Asymmetric Information Cause the Home Equity Bias?

The home equity bias is one of the many puzzles existing in international finance. This puzzle is characterized by the concentration of domestic equity in any investor's portfolio, which is in contradiction with the benchmark of full diversification in a world mutual fund. Based on Admati'...

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Bibliographic Details
Main Author: Bravo-Ortega, Claudio
Format: Policy Research Working Paper
Language:English
en_US
Published: World Bank, Washington, DC 2012
Subjects:
ASSET PRICES
ASSETS
ASYMMETRIC INFORMATION
BANK BRANCHES
BENCHMARK
CAPITAL FLOWS
CORPORATE FINANCE
CURRENCY
DOMESTIC EQUITY
ECONOMIC DYNAMICS
EMPIRICAL EVIDENCE
ENDOWMENTS
EQUILIBRIUM
EQUITY FLOWS
EQUITY MARKETS
EQUITY PRICES
EXPECTED VALUE
EXPECTED VALUES
FINANCIAL ASSETS
FINANCIAL ECONOMICS
FINANCIAL INFORMATION
FINANCIAL MARKETS
FOREIGN EQUITIES
FOREIGN FIRMS
FOREIGN INVESTMENT
FOREIGN INVESTORS
FOREIGN OWNERSHIP
HUMAN CAPITAL
INFORMATION ACQUISITION
INFORMATION ASYMMETRIES
INTERNATIONAL FINANCE
INVESTMENT BANKS
INVESTMENT DECISIONS
LIQUIDITY
LIQUIDITY CONSTRAINTS
MACROECONOMICS
MUTUAL FUND
MUTUAL FUNDS
PORTFOLIO
PORTFOLIO DIVERSIFICATION
PORTFOLIO INVESTMENT
PORTFOLIO INVESTMENT FLOWS
PORTFOLIOS
PRIVATE INFORMATION
PURCHASES
RATIONAL EXPECTATIONS
RISK AVERSION
RISK SHARING
SECURITIES
SECURITIES MARKETS
STOCK MARKET
STOCKS
THEORETICAL MODELS
TRADERS
TRANSACTION COSTS
UTILITY FUNCTION
WEALTH
Online Access:http://documents.worldbank.org/curated/en/2005/01/5619960/asymmetric-information-cause-home-equity-bias
http://hdl.handle.net/10986/8909

Internet

http://documents.worldbank.org/curated/en/2005/01/5619960/asymmetric-information-cause-home-equity-bias
http://hdl.handle.net/10986/8909

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