Home bias

This chapter discusses the concept of “home bias in research.” For this purpose, first, it starts with the discussion of the concept of “place attachment” - the bonding that occurs between individuals and their meaningful environments. It discusses a tripartite framework for organizing definitions of place attachment, and provides a multi-paradigmatic framework for organizing methodologies of place attachment. Then, it discusses how “place attachment” can be regarded as a contributing factor to “home bias in research.” More specifically, it provides overviews of the literature on 22 different topics - in which variations of “home bias” are present - and notes that “home bias in research” is only one of them. The common contributing factor to all of the 22 “home bias” topics - including the “home bias in research” - can be seen to be “place attachment.” The 22 different topics, which are discussed, are as follows: (1) Equity Investment, (2) Bond Investment, (3) Equity Analysts, (4) Loan Market, (5) Saving-Investment, (6) Foreign Stock Listing, (7) Currency, (8) International Business, (9) International Trade, (10) International Marketing, (11) Mergers and Acquisitions, (12) Economic Nationalism, (13) Corporate Governance, (14) Accounting Standards, (15) Government Procurement, (16) Academic Research Citations, (17) Patent Citations, (18) Entrepreneurship, (19) Entrepreneur Location Choice, (20) Forum Selection in Law, (21) Real Estate, and (22) Sport Competition. Finally, it provides a summary of the discussion of “home bias in research,” i.e., currently being partial, and points out that the use of a multi-paradigmatic approach would overcome the home bias, in general, and in research (including research in financial economics), in particular.