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 language | English |
|---|---|
| Pages (from-to) | 1125-1132 |
| Number of pages | 8 |
| Journal | Applied Financial Economics |
| Volume | 20 |
| Issue number | 14 |
| DOIs | |
| Publication status | Published - Jul 2010 |