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dc.contributor.authorEhrlich, Isaacen_US
dc.contributor.authorShin, Jong Kooken_US
dc.contributor.authorYin, Yongen_US
dc.date.accessioned2012-04-04en_US
dc.date.accessioned2012-06-15T07:56:15Z-
dc.date.available2012-06-15T07:56:15Z-
dc.date.issued2011en_US
dc.identifier.piurn:nbn:de:101:1-201111072746-
dc.identifier.urihttp://hdl.handle.net/10419/58851-
dc.description.abstractBy allowing for imperfectly informed markets and the role of private information, we offer new insights about observed deviations of portfolio concentrations in domestic relative to foreign risky assets, or home bias, from what standard finance models predict. Our model ascribes the bias to endogenous information acquisition bolstered by investors' human capital. We develop discriminating hypotheses about the influence of specific and general human capital endowments and direct and opportunity costs of managing risky assets in determining whether to hold these assets, and how the assets' portfolio shares vary across investors and financial markets. These hypotheses are supported by numerical and econometric analyses of panel data from the US over 1992-2007, and 23 international financial markets over 2001-2007. The results indicate the existence of differences across countries in the degree to which home asset prices are information-revealing, which may be relevant for fully understanding the global financial crisis of 2007-09.en_US
dc.language.isoengen_US
dc.publisherIZA Bonnen_US
dc.relation.ispartofseriesDiscussion Paper series, Forschungsinstitut zur Zukunft der Arbeit 6060en_US
dc.subject.jelD82en_US
dc.subject.jelF30en_US
dc.subject.jelG11en_US
dc.subject.jelG12en_US
dc.subject.jelG15en_US
dc.subject.jelJ24en_US
dc.subject.ddc330en_US
dc.subject.keywordprivate informationen_US
dc.subject.keywordhuman capitalen_US
dc.subject.keywordhome biasen_US
dc.subject.keywordfinancial marketsen_US
dc.subject.keywordrisky assetsen_US
dc.subject.keywordglobal financial crisisen_US
dc.subject.stwPortfolio-Managementen_US
dc.subject.stwHome Bias Puzzleen_US
dc.subject.stwAsymmetrische Informationen_US
dc.subject.stwInternationaler Finanzmarkten_US
dc.subject.stwUSAen_US
dc.subject.stwWelten_US
dc.titlePrivate information, human capital, and optimal 'home bias' in financial marketsen_US
dc.typeWorking Paperen_US
dc.identifier.ppn689699425en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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