Foreign Bias in the Global Portfolio Investment of Selected OIC Countries
Keywords:
Foreign bias, global portfolio investment, relative factors, gravity model, home bias.
Abstract
Home bias reflects the propensity of investors to invest substantially in the domestic market. When investing abroad investors exhibit foreign bias, a tendency to overweight certain foreign markets based on their preferences. A thorough review of the literature reveals that foreign bias has not been thoroughly investigated in emerging countries, especially in the context of OIC countries. The purpose of this research is to examine the determinants of foreign bias in the global portfolio investment of selected OIC countries. An unbalanced bilateral panel data of 12 OIC countries’ outward equity investment in 74 host countries from the year 2001 to 2016 is analyzed. Cross-sectional analysis shows that OIC countries exhibit higher foreign bias towards their OIC counterparts especially in the MENA region. The results suggest, OIC countries not only exhibit foreign bias but also demonstrate regional bias. System Generalized Method of Moments (GMM) empirically shows that foreign bias is possibly explained by factors related to financial market openness, familiarity, information asymmetry, and global financial crisis. This study has a significant implication for the investors, fund managers and the regulators of the OIC countries. Investors and fund managers in OIC countries should be aware of the existence of foreign bias in their global portfolio investment that may potentially reduce the benefits of optimal diversification. It is a call for policymakers in the OIC countries to convince their local investors that international portfolio diversification offers risk sharing and eventually increases investment return.
Downloads
Download data is not yet available.
References
Abdioglu, N., Khurshed, A. & Stathopoulos, K. (2013). Foreign institutional investment: Is governance quality at home important? Journal of International Money and Finance, 32, 916–940. https://doi.org/10.1016/j.jimonfin.2012.08.001
Ahearne, A. G., Griever, W. L. & Warnock, F. E. (2004). Information costs and home bias?: an analysis of US holdings of foreign equities. Journal of International Economics, 62, 313–336. https://doi.org/10.1016/S0022-1996(03)00015-1
Aggarwal, R., Kearney C. & Lucey B. (2012). Gravity and Culture in Foreign Portfolio Investment. Journal of Banking and Finance, 36(2), 525-538. https://doi.org/ 10.1016/j.jbankfin.2011.08.007
Amiram, D. (2012). Financial Information Globalization and Foreign Investment Decisions. Journal of International Accounting Research, 11(2), 57–81. https://doi.org/10.2308/jiar-50282
Andrew Karolyi, G. (2016). The Gravity of Culture for Finance. Journal of Corporate Finance, 41, 610–625. Retrieved from http://ssrn.com/abstract=2600702
Ardalan, K. (2018). Equity Home Bias: a Review Essay. Journal of Economic Surveys, 33(3), 949–967. https://doi.org/10.1111/joes.12302
Aziz, O. G. & Mishra, A. V. (2016). Determinants of FDI inflows to Arab economies. Journal of International Trade and Economic Development, 25(3), 325–356. https://doi.org/10.1080/09638199.2015.1057610
Bae, K. H., Stulz, R. M. & Tan, H. (2008). Do local analysts know more? A cross-country study of the performance of local analysts and foreign analysts. Journal of Financial Economics, 88, 581–606. https://doi.org/10.1016/j.jfineco.2007.02.004
Bahlous, M. & Mohd Yusof, R. (2014). International diversification among Islamic investments: is there any benefit. Managerial Finance, 40(6), 613–633. https://doi.org/10.1108/MF-08-2013-0225
Baltzer, M., Stolper, O. & Walter, A. (2015). Home-field advantage or a matter of ambiguity aversion? Local bias among German individual investors. European Journal of Finance, 21(9), 734–754. https://doi.org/10.1080/1351847X.2013.877514
Barbopoulos, L., Marshall, A., MacInnes, C. & McColgan, P. (2014). Foreign direct investment in emerging markets and acquirers’ value gains. International Business Review, 23(3), 604–619. https://doi.org/10.1016/j.ibusrev.2013.10.003
Beugelsdijk, S. & Frijns, B. (2010). A cultural explanation of the foreign bias in international asset allocation. Journal of Banking and Finance, 34(9), 2121–2131. https://doi.org/10.1016/j.jbankfin.2010.01.020
Bose, U., MacDonald, R. & Tsoukas, S. (2015). Education and the local equity bias around the world. Journal of International Financial Markets, Institutions and Money, 39, 65–88. https://doi.org/10.1016/j.intfin.2015.06.002
Chan, K. & Covrig, V. (2012). What determines mutual fund trading in foreign stocks? Journal of International Money and Finance, 31(4), 793–817. https://doi.org/10.1016/j.jimonfin.2012.01.003
Chan, K., Covrig, V. & Ng, L. (2005). What determines the domestic bias and foreign bias? Evidence from mutual fund equity allocations worldwide. Journal of Finance, 60(3), 1495–1534. https://doi.org/10.1111/j.1540-6261.2005.768_1.x
Chinn, M. D. & Ito, H. (2006). What matters for Financial Development? Capital Control, Institutions and Interactions. Journal of Development Economics, 81(1), 163–192.
Choi, C., Rhee, D. E. & Oh, Y. (2014). Information and capital flows revisited: The Internet as a determinant of transactions in financial assets. Economic Modelling, 40, 191–198. https://doi.org/10.1016/j.econmod.2014.03.027
Dahlquist, M., Pinkowitz, L., Stulz, R. M., Williamson, R. & Stulz, R. M. (2003). Corporate Governance and the Home Bias. Journal of Financial and Quantitative Analysis, 38(1), 87. https://doi.org/10.2307/4126765
Diyarbakirlioglu, E. (2011). Domestic and foreign country bias in international equity portfolios. Journal of Multinational Financial Management, 21(5), 301–329. https://doi.org/10.1016/j.mulfin.2011.07.002
Dodd, O. & Frijns, B. (2015). Cross-listing decisions and the foreign bias of investors. Finance Research Letters, 15, 160–166. https://doi.org/10.1016/j.frl.2015.09.006
Driessen, J. & Laeven, L. (2007). International portfolio diversification benefits: Cross-country evidence from a local perspective. Journal of Banking and Finance, 31(6), 1693–1712. https://doi.org/10.1016/j.jbankfin.2006.11.006
El Hedi Arouri, M., Khuong Nguyen, D. & Pukthuanthong, K. (2012). An international CAPM for partially integrated markets?: Theory and empirical evidence. Journal of Banking and Finance, 36(9), 2473–2493. https://doi.org/10.1016/j.jbankfin.2012.05.004
Elona, R. (2014). Essays on the Determinants of Foreign Asset Portfolio Allocation, Home Bias and Portfolio Dynamics during the Financial Crisis.
Faruqee, H., Li, S. & Yan, I. K. (2004). The Determinants of International Portfolio Holdings and Home Bias. IMF Working Paper, WP/04/34, International Monetary Fund.
Ferreira, M. A. & Miguel, A. F. (2011). The determinants of domestic and foreign bond bias. Journal of Multinational Financial Management, 21(5), 279–300. https://doi.org/10.1016/j.mulfin.2011.07.004
Foad, H. (2011). Immigration and equity home bias. Journal of International Money and Finance, 30(6), 982–998. https://doi.org/10.1016/j.jimonfin.2011.06.005
French, K. & Poterba, J. (1991). Investor diversification and international equity markets. American Economic Review, 81, 222–226. https://doi.org/10.1126/science.151.3712.867-a
Giofré, M. (2009). The role of information asymmetries and inflation hedging in international equity portfolios. Journal of Multinational Financial Management, 19, 237–255. https://doi.org/10.1016/j.mulfin.2008.11.004
Giofré, M. (2013). International diversification: Households versus institutional investors. The North American Journal of Economics and Finance, 26, 145–176. https://doi.org/10.1016/j.najef.2013.08.003
Hassan, M. K. (2003). Portfolio investment of the OIC countries and their implications on trade. Managerial Finance, 29(2/3), 122–157. https://doi.org/10.1108/03074350310768715
Imazeki, T. & Gallimore, P. (2009). Domestic and foreign bias in real estate mutual funds. Journal of Property Research, 26(4), 367–389. https://doi.org/10.1080/09599916.2009.485419
Jafari, Y., Ismail, M. A. & Kouhestani, M. S. (2011a). Determinants of Trade Flows among D8 Countries: Evidence from the Gravity Model. Journal of Economic Cooperation and Development, 32(3), 21–38.
Kabir Hassan, M., Sanchez, B. A. & Ershad Hussain, M. (2010). Economic performance of the OIC countries and the prospect of an Islamic common market. Journal of Economic Cooperation and Development, 31(2), 65–121.
Kalev, P. S., Nguyen, A. H. & Oh, N. Y. (2008). Foreign versus local investors: Who knows more? Who makes more? Journal of Banking and Finance, 32(11), 2376–2389. https://doi.org/10.1016/j.jbankfin.2007.12.031
Ke, D., Ng, L. & Wang, Q. (2010). Home bias in foreign investment decisions. Journal of International Business Studies, 41(6), 960–979. https://doi.org/10.1057/jibs.2009.48
Kearney, C. (2012). Emerging markets research: Trends, issues and future directions. Emerging Markets Review, 13(2), 159–183. https://doi.org/10.1016/j.ememar.2012.01.003
Kim, H., Cho, S. H. & Kim, Y. (2015). Home bias, risk differential, and cultural spatial spillover effects. Journal of International Money and Finance, 51, 114–136. https://doi.org/10.1016/j.jimonfin.2014.10.007
Konara, P. (2020). The role of language connectedness in reducing home bias in trade, investment, information, and people flows. Research in International Business and Finance, 52(December 2019), 101180. https://doi.org/10.1016/j.ribaf.2020.101180
Kumar, S. & Goyal, N. (2015). Behavioral biases in investment decision making – a systematic literature review. Qualitative Research in Financial Markets, 7(1), 88–108. https://doi.org/10.1108/QRFM-07-2014-0022
Lane, P. R. & Milesi-Ferretti, G. M. (2008). International Investment Patterns. Review of Economics and Statistics, 90(3), 538–549. https://doi.org/10.1162/rest.90.3.538
Leblang, D. (2010). Familiarity Breeds Investment: Diaspora Networks and International Investment. American Political Science Review, 104(03), 584–600. https://doi.org/10.1017/S0003055410000201
Levy, H. & Sarnat, M. (1970). International Diversification of Investment Portfolios. American Economic Review, 60(4), 668–675. https://doi.org/10.2307/1818410
Li, K., Sarkar, A. & Wang, Z. (2003). Diversification benefits of emerging markets subject to portfolio constraints. Journal of Empirical Finance, 10(1–2), 57–80. https://doi.org/10.1016/S0927-5398(02)00027-0
Liu, Y., Park, J. L. & Sohn, B. (2018). Foreign Investment in Emerging Markets: International Diversification or Familiarity Bias? Emerging Markets Finance and Trade, 54(10), 2169–2191. https://doi.org/10.1080/1540496X.2017.1369403
Maier, M. & Scholz, H. (2018). A return-based approach to identify the home bias of European equity funds. European Journal of Finance, 4364, 1–23. https://doi.org/10.1080/1351847X.2017.1415946
Mhadhbi, F. (2013). International Portfolio Diversification and Assets Allocation Bias. International Journal of Business and Management, 8(3), 51–71. https://doi.org/10.5539/ijbm.v8n3p51
Mishra, A. V. (2014). Australia’s home bias and cross border taxation. Global Finance Journal. https://doi.org/10.1016/j.gfj.2014.06.003
Mishra, A. V. (2015). Measures of equity home bias puzzle. Journal of Empirical Finance, 34, 293–312. https://doi.org/10.1016/j.jempfin.2015.08.001
Mishra, A. V. & Conteh, U. B. (2014). Australia’s bond home bias. Review of Pacific Basin Financial Markets and Policies, 17(1). https://doi.org/10.1142/S0219091514500015
Mishra, A. V. & Ratti, R. A. (2013). Home bias and cross border taxation. Journal of International Money and Finance, 32(1), 169–193. https://doi.org/10.1016/j.jimonfin.2012.04.004
Mishra, A. V. (2008). Australia’s Equity Home Bias. Australian Economics Papers. https://doi.org/10.1111/j.1467-8454.2008.00329.x
Mishra, A. V. (2016). Foreign bias in Australian-domiciled mutual fund holdings. Pacific Basin Finance Journal, 39, 101–123.
Mishra, A. V. & Ratti, R. A. (2013). Home bias and cross border taxation. Journal of International Money and Finance, 32, 169–193. https://doi.org/10.1016/j.jimonfin.2012.04.004
Mondria, J. & Wu, T. (2010). The puzzling evolution of the home bias, information processing and financial openness. Journal of Economic Dynamics and Control, 34(5), 875–896. https://doi.org/10.1016/j.jedc.2009.12.004
Ni, J. (2009). The effects of portfolio size on international equity home bias puzzle. International Review of Economics and Finance, 18(3), 469–478. https://doi.org/10.1016/j.iref.2008.03.001
Niszczota, P. (2014). Cross-country differences in personality and the foreign bias in international equity portfolios. The European Journal of Finance, 20(10), 934–956. https://doi.org/10.1080/1351847X.2013.856332
Noman, A., Rahman, M. N. & Naka, A. (2015). Portfolio investment outflow and the complementary role of direct investment. Journal of Financial Economic Policy, 7(3), 190–206. https://doi.org/10.1108/JFEP-03-2014-0024
Park, D., Taniguchi, K. & Tian, S. (2019). Determinants of foreign and domestic investment bias in global bond markets: Some empirical evidence. North American Journal of Economics and Finance, 49(August 2018), 287–303. https://doi.org/10.1016/j.najef.2019.04.012
Poshakwale, S. S. & Thapa, C. (2011). Investor protection and international equity portfolio investments. Global Finance Journal, 22(2), 116–129. https://doi.org/10.1016/j.gfj.2011.10.003
Pradkhan, E. (2014). Impact of culture and patriotism on home bias in bond portfolios. Review of Managerial Science, (1964). https://doi.org/10.1007/s11846-014-0146-4
Raimi, L. & Mobolaji, H. I. (2008). Imperative of economic integration among Muslim countries: Lessons from European globalization. Humanomics, 24(2), 130–144. https://doi.org/10.1108/08288660810876840
Thapa, C. & Poshakwale, S. S. (2012). Country-specific equity market characteristics and foreign equity portfolio allocation. Journal of International Money and Finance, 31(2), 189–211. https://doi.org/10.1016/j.jimonfin.2011.10.011
Vermeulen, R. (2013). International diversification during the financial crisis: A blessing for equity investors? Journal of International Money and Finance, 35, 104–123. https://doi.org/10.1016/j.jimonfin.2013.01.003
Wallingford, B. A. & Reilly, F. K. (1979). Investment Analysis and Portfolio Management. In The Journal of Finance (Vol. 34). https://doi.org/10.2307/2327255
Wu, W. L. & Gau, Y. F. (2016). Home bias in portfolio choices: social learning among partially informed agents. Review of Quantitative Finance and Accounting. https://doi.org/10.1007/s11156-016-0560-6
Ahearne, A. G., Griever, W. L. & Warnock, F. E. (2004). Information costs and home bias?: an analysis of US holdings of foreign equities. Journal of International Economics, 62, 313–336. https://doi.org/10.1016/S0022-1996(03)00015-1
Aggarwal, R., Kearney C. & Lucey B. (2012). Gravity and Culture in Foreign Portfolio Investment. Journal of Banking and Finance, 36(2), 525-538. https://doi.org/ 10.1016/j.jbankfin.2011.08.007
Amiram, D. (2012). Financial Information Globalization and Foreign Investment Decisions. Journal of International Accounting Research, 11(2), 57–81. https://doi.org/10.2308/jiar-50282
Andrew Karolyi, G. (2016). The Gravity of Culture for Finance. Journal of Corporate Finance, 41, 610–625. Retrieved from http://ssrn.com/abstract=2600702
Ardalan, K. (2018). Equity Home Bias: a Review Essay. Journal of Economic Surveys, 33(3), 949–967. https://doi.org/10.1111/joes.12302
Aziz, O. G. & Mishra, A. V. (2016). Determinants of FDI inflows to Arab economies. Journal of International Trade and Economic Development, 25(3), 325–356. https://doi.org/10.1080/09638199.2015.1057610
Bae, K. H., Stulz, R. M. & Tan, H. (2008). Do local analysts know more? A cross-country study of the performance of local analysts and foreign analysts. Journal of Financial Economics, 88, 581–606. https://doi.org/10.1016/j.jfineco.2007.02.004
Bahlous, M. & Mohd Yusof, R. (2014). International diversification among Islamic investments: is there any benefit. Managerial Finance, 40(6), 613–633. https://doi.org/10.1108/MF-08-2013-0225
Baltzer, M., Stolper, O. & Walter, A. (2015). Home-field advantage or a matter of ambiguity aversion? Local bias among German individual investors. European Journal of Finance, 21(9), 734–754. https://doi.org/10.1080/1351847X.2013.877514
Barbopoulos, L., Marshall, A., MacInnes, C. & McColgan, P. (2014). Foreign direct investment in emerging markets and acquirers’ value gains. International Business Review, 23(3), 604–619. https://doi.org/10.1016/j.ibusrev.2013.10.003
Beugelsdijk, S. & Frijns, B. (2010). A cultural explanation of the foreign bias in international asset allocation. Journal of Banking and Finance, 34(9), 2121–2131. https://doi.org/10.1016/j.jbankfin.2010.01.020
Bose, U., MacDonald, R. & Tsoukas, S. (2015). Education and the local equity bias around the world. Journal of International Financial Markets, Institutions and Money, 39, 65–88. https://doi.org/10.1016/j.intfin.2015.06.002
Chan, K. & Covrig, V. (2012). What determines mutual fund trading in foreign stocks? Journal of International Money and Finance, 31(4), 793–817. https://doi.org/10.1016/j.jimonfin.2012.01.003
Chan, K., Covrig, V. & Ng, L. (2005). What determines the domestic bias and foreign bias? Evidence from mutual fund equity allocations worldwide. Journal of Finance, 60(3), 1495–1534. https://doi.org/10.1111/j.1540-6261.2005.768_1.x
Chinn, M. D. & Ito, H. (2006). What matters for Financial Development? Capital Control, Institutions and Interactions. Journal of Development Economics, 81(1), 163–192.
Choi, C., Rhee, D. E. & Oh, Y. (2014). Information and capital flows revisited: The Internet as a determinant of transactions in financial assets. Economic Modelling, 40, 191–198. https://doi.org/10.1016/j.econmod.2014.03.027
Dahlquist, M., Pinkowitz, L., Stulz, R. M., Williamson, R. & Stulz, R. M. (2003). Corporate Governance and the Home Bias. Journal of Financial and Quantitative Analysis, 38(1), 87. https://doi.org/10.2307/4126765
Diyarbakirlioglu, E. (2011). Domestic and foreign country bias in international equity portfolios. Journal of Multinational Financial Management, 21(5), 301–329. https://doi.org/10.1016/j.mulfin.2011.07.002
Dodd, O. & Frijns, B. (2015). Cross-listing decisions and the foreign bias of investors. Finance Research Letters, 15, 160–166. https://doi.org/10.1016/j.frl.2015.09.006
Driessen, J. & Laeven, L. (2007). International portfolio diversification benefits: Cross-country evidence from a local perspective. Journal of Banking and Finance, 31(6), 1693–1712. https://doi.org/10.1016/j.jbankfin.2006.11.006
El Hedi Arouri, M., Khuong Nguyen, D. & Pukthuanthong, K. (2012). An international CAPM for partially integrated markets?: Theory and empirical evidence. Journal of Banking and Finance, 36(9), 2473–2493. https://doi.org/10.1016/j.jbankfin.2012.05.004
Elona, R. (2014). Essays on the Determinants of Foreign Asset Portfolio Allocation, Home Bias and Portfolio Dynamics during the Financial Crisis.
Faruqee, H., Li, S. & Yan, I. K. (2004). The Determinants of International Portfolio Holdings and Home Bias. IMF Working Paper, WP/04/34, International Monetary Fund.
Ferreira, M. A. & Miguel, A. F. (2011). The determinants of domestic and foreign bond bias. Journal of Multinational Financial Management, 21(5), 279–300. https://doi.org/10.1016/j.mulfin.2011.07.004
Foad, H. (2011). Immigration and equity home bias. Journal of International Money and Finance, 30(6), 982–998. https://doi.org/10.1016/j.jimonfin.2011.06.005
French, K. & Poterba, J. (1991). Investor diversification and international equity markets. American Economic Review, 81, 222–226. https://doi.org/10.1126/science.151.3712.867-a
Giofré, M. (2009). The role of information asymmetries and inflation hedging in international equity portfolios. Journal of Multinational Financial Management, 19, 237–255. https://doi.org/10.1016/j.mulfin.2008.11.004
Giofré, M. (2013). International diversification: Households versus institutional investors. The North American Journal of Economics and Finance, 26, 145–176. https://doi.org/10.1016/j.najef.2013.08.003
Hassan, M. K. (2003). Portfolio investment of the OIC countries and their implications on trade. Managerial Finance, 29(2/3), 122–157. https://doi.org/10.1108/03074350310768715
Imazeki, T. & Gallimore, P. (2009). Domestic and foreign bias in real estate mutual funds. Journal of Property Research, 26(4), 367–389. https://doi.org/10.1080/09599916.2009.485419
Jafari, Y., Ismail, M. A. & Kouhestani, M. S. (2011a). Determinants of Trade Flows among D8 Countries: Evidence from the Gravity Model. Journal of Economic Cooperation and Development, 32(3), 21–38.
Kabir Hassan, M., Sanchez, B. A. & Ershad Hussain, M. (2010). Economic performance of the OIC countries and the prospect of an Islamic common market. Journal of Economic Cooperation and Development, 31(2), 65–121.
Kalev, P. S., Nguyen, A. H. & Oh, N. Y. (2008). Foreign versus local investors: Who knows more? Who makes more? Journal of Banking and Finance, 32(11), 2376–2389. https://doi.org/10.1016/j.jbankfin.2007.12.031
Ke, D., Ng, L. & Wang, Q. (2010). Home bias in foreign investment decisions. Journal of International Business Studies, 41(6), 960–979. https://doi.org/10.1057/jibs.2009.48
Kearney, C. (2012). Emerging markets research: Trends, issues and future directions. Emerging Markets Review, 13(2), 159–183. https://doi.org/10.1016/j.ememar.2012.01.003
Kim, H., Cho, S. H. & Kim, Y. (2015). Home bias, risk differential, and cultural spatial spillover effects. Journal of International Money and Finance, 51, 114–136. https://doi.org/10.1016/j.jimonfin.2014.10.007
Konara, P. (2020). The role of language connectedness in reducing home bias in trade, investment, information, and people flows. Research in International Business and Finance, 52(December 2019), 101180. https://doi.org/10.1016/j.ribaf.2020.101180
Kumar, S. & Goyal, N. (2015). Behavioral biases in investment decision making – a systematic literature review. Qualitative Research in Financial Markets, 7(1), 88–108. https://doi.org/10.1108/QRFM-07-2014-0022
Lane, P. R. & Milesi-Ferretti, G. M. (2008). International Investment Patterns. Review of Economics and Statistics, 90(3), 538–549. https://doi.org/10.1162/rest.90.3.538
Leblang, D. (2010). Familiarity Breeds Investment: Diaspora Networks and International Investment. American Political Science Review, 104(03), 584–600. https://doi.org/10.1017/S0003055410000201
Levy, H. & Sarnat, M. (1970). International Diversification of Investment Portfolios. American Economic Review, 60(4), 668–675. https://doi.org/10.2307/1818410
Li, K., Sarkar, A. & Wang, Z. (2003). Diversification benefits of emerging markets subject to portfolio constraints. Journal of Empirical Finance, 10(1–2), 57–80. https://doi.org/10.1016/S0927-5398(02)00027-0
Liu, Y., Park, J. L. & Sohn, B. (2018). Foreign Investment in Emerging Markets: International Diversification or Familiarity Bias? Emerging Markets Finance and Trade, 54(10), 2169–2191. https://doi.org/10.1080/1540496X.2017.1369403
Maier, M. & Scholz, H. (2018). A return-based approach to identify the home bias of European equity funds. European Journal of Finance, 4364, 1–23. https://doi.org/10.1080/1351847X.2017.1415946
Mhadhbi, F. (2013). International Portfolio Diversification and Assets Allocation Bias. International Journal of Business and Management, 8(3), 51–71. https://doi.org/10.5539/ijbm.v8n3p51
Mishra, A. V. (2014). Australia’s home bias and cross border taxation. Global Finance Journal. https://doi.org/10.1016/j.gfj.2014.06.003
Mishra, A. V. (2015). Measures of equity home bias puzzle. Journal of Empirical Finance, 34, 293–312. https://doi.org/10.1016/j.jempfin.2015.08.001
Mishra, A. V. & Conteh, U. B. (2014). Australia’s bond home bias. Review of Pacific Basin Financial Markets and Policies, 17(1). https://doi.org/10.1142/S0219091514500015
Mishra, A. V. & Ratti, R. A. (2013). Home bias and cross border taxation. Journal of International Money and Finance, 32(1), 169–193. https://doi.org/10.1016/j.jimonfin.2012.04.004
Mishra, A. V. (2008). Australia’s Equity Home Bias. Australian Economics Papers. https://doi.org/10.1111/j.1467-8454.2008.00329.x
Mishra, A. V. (2016). Foreign bias in Australian-domiciled mutual fund holdings. Pacific Basin Finance Journal, 39, 101–123.
Mishra, A. V. & Ratti, R. A. (2013). Home bias and cross border taxation. Journal of International Money and Finance, 32, 169–193. https://doi.org/10.1016/j.jimonfin.2012.04.004
Mondria, J. & Wu, T. (2010). The puzzling evolution of the home bias, information processing and financial openness. Journal of Economic Dynamics and Control, 34(5), 875–896. https://doi.org/10.1016/j.jedc.2009.12.004
Ni, J. (2009). The effects of portfolio size on international equity home bias puzzle. International Review of Economics and Finance, 18(3), 469–478. https://doi.org/10.1016/j.iref.2008.03.001
Niszczota, P. (2014). Cross-country differences in personality and the foreign bias in international equity portfolios. The European Journal of Finance, 20(10), 934–956. https://doi.org/10.1080/1351847X.2013.856332
Noman, A., Rahman, M. N. & Naka, A. (2015). Portfolio investment outflow and the complementary role of direct investment. Journal of Financial Economic Policy, 7(3), 190–206. https://doi.org/10.1108/JFEP-03-2014-0024
Park, D., Taniguchi, K. & Tian, S. (2019). Determinants of foreign and domestic investment bias in global bond markets: Some empirical evidence. North American Journal of Economics and Finance, 49(August 2018), 287–303. https://doi.org/10.1016/j.najef.2019.04.012
Poshakwale, S. S. & Thapa, C. (2011). Investor protection and international equity portfolio investments. Global Finance Journal, 22(2), 116–129. https://doi.org/10.1016/j.gfj.2011.10.003
Pradkhan, E. (2014). Impact of culture and patriotism on home bias in bond portfolios. Review of Managerial Science, (1964). https://doi.org/10.1007/s11846-014-0146-4
Raimi, L. & Mobolaji, H. I. (2008). Imperative of economic integration among Muslim countries: Lessons from European globalization. Humanomics, 24(2), 130–144. https://doi.org/10.1108/08288660810876840
Thapa, C. & Poshakwale, S. S. (2012). Country-specific equity market characteristics and foreign equity portfolio allocation. Journal of International Money and Finance, 31(2), 189–211. https://doi.org/10.1016/j.jimonfin.2011.10.011
Vermeulen, R. (2013). International diversification during the financial crisis: A blessing for equity investors? Journal of International Money and Finance, 35, 104–123. https://doi.org/10.1016/j.jimonfin.2013.01.003
Wallingford, B. A. & Reilly, F. K. (1979). Investment Analysis and Portfolio Management. In The Journal of Finance (Vol. 34). https://doi.org/10.2307/2327255
Wu, W. L. & Gau, Y. F. (2016). Home bias in portfolio choices: social learning among partially informed agents. Review of Quantitative Finance and Accounting. https://doi.org/10.1007/s11156-016-0560-6
Published
2023-10-08
How to Cite
Md Elias, N. L. (2023). Foreign Bias in the Global Portfolio Investment of Selected OIC Countries. Information Management and Business Review, 15(3(I), 216-235. https://doi.org/10.22610/imbr.v15i3(I).3531
Issue
Section
Research Paper
Copyright (c) 2023 Nura Lina Md Elias
This work is licensed under a Creative Commons Attribution 4.0 International License.
Author (s) should affirm that the material has not been published previously. It has not been submitted and it is not under consideration by any other journal. At the same time author (s) need to execute a publication permission agreement to assume the responsibility of the submitted content and any omissions and errors therein. After submission of revised paper in the light of suggestions of the reviewers, the editorial team edits and formats manuscripts to bring uniformity and standardization in published material.
This work will be licensed under Creative Commons Attribution 4.0 International (CC BY 4.0) and under condition of the license, users are free to read, copy, remix, transform, redistribute, download, print, search or link to the full texts of articles and even build upon their work as long as they credit the author for the original work. Moreover, as per journal policy author (s) hold and retain copyrights without any restrictions.
