Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/58851 
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dc.contributor.authorEhrlich, Isaacen
dc.contributor.authorShin, Jong Kooken
dc.contributor.authorYin, Yongen
dc.date.accessioned2012-04-04-
dc.date.accessioned2012-06-15T07:56:15Z-
dc.date.available2012-06-15T07:56:15Z-
dc.date.issued2011-
dc.identifier.piurn:nbn:de:101:1-201111072746en
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
dc.language.isoengen
dc.publisher|aInstitute for the Study of Labor (IZA) |cBonnen
dc.relation.ispartofseries|aIZA Discussion Papers |x6060en
dc.subject.jelD82en
dc.subject.jelF30en
dc.subject.jelG11en
dc.subject.jelG12en
dc.subject.jelG15en
dc.subject.jelJ24en
dc.subject.ddc330en
dc.subject.keywordprivate informationen
dc.subject.keywordhuman capitalen
dc.subject.keywordhome biasen
dc.subject.keywordfinancial marketsen
dc.subject.keywordrisky assetsen
dc.subject.keywordglobal financial crisisen
dc.subject.stwPortfolio-Managementen
dc.subject.stwHome Bias Puzzleen
dc.subject.stwAsymmetrische Informationen
dc.subject.stwInternationaler Finanzmarkten
dc.subject.stwUSAen
dc.subject.stwWelten
dc.titlePrivate information, human capital, and optimal 'home bias' in financial markets-
dc.typeWorking Paperen
dc.identifier.ppn689699425en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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