The determinates of equity portfolio holdings

Jonathan A. Batten, Xuan Vinh Vo

Research output: Contribution to journalArticle

8 Citations (Scopus)

Abstract

The investor preference for home assets rather than a diversified portfolio of international assets termed 'home bias' remains a puzzle, given recent information and technology improvements, although presumed risk reduction benefits may have been reduced through improved financial market integration. This article investigates the effect of various barriers to nternational investment on Australian equity portfolio investment and confirms the common view that higher transaction costs impede international investment, although market liquidity, market size and common language are also important factors.

Original languageEnglish
Pages (from-to)1125-1132
Number of pages8
JournalApplied Financial Economics
Volume20
Issue number14
DOIs
Publication statusPublished - Jul 2010

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