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Home Equity Bias

Author

Listed:
  • Akbar, Ume Salma

    (Sukkur Institute of Business Administration)

  • Mubashir Ali, Mubashir Ali

    (Sukkur Institute of Business Administration)

  • Shah, Zulifqar Ali

    (Department of Management Sciences International Islamic University, Islamabad, Pakistan)

Abstract

This study is aimed to investigate the factors that are intended to lessen the home equity bias or became a base for foreign diversification. By using the foreign diversification of twenty-one developing countries over a period of ten years and incorporating the effect of nine important variables for exploring their effect on home bias. The results from Random effect panel regression shows a diminishing trend of investors towards home equity biasness and the contributing factors for lessening this bias are local market share in world market capitalization and information available to investors and trade opening.

Suggested Citation

  • Akbar, Ume Salma & Mubashir Ali, Mubashir Ali & Shah, Zulifqar Ali, 2014. "Home Equity Bias," Sukkur IBA Journal of Management and Business, Sukkur IBA University, vol. 1(1), pages 40-56, October.
    • Handle: RePEc:ris:ibajmb:0003
    DOI: 10.30537/sijmb.v1i1.84
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    References listed on IDEAS

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    More about this item

    Keywords

    Behavioral; Finance; Foreign; Diversification; Behavioral; Finance; Political;
    All these keywords.

    JEL classification:

    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination

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