Biases in international portfolio allocation and investor protection standards
Kwabi, Frank O., Thapa, Chandra, Paudyal, Krishna, and Adegbite, Emmanuel (2017) Biases in international portfolio allocation and investor protection standards. International Review of Financial Analysis, 53. pp. 66-79.
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Abstract
Economic reasoning suggests that financial globalization that encourages optimal international portfolio investments should improve investor protection standards (IPS) of a country. In practice, however, investors manifest varying degrees of suboptimal international portfolio allocations. Using a panel dataset covering 44 countries spanning over 15 years we examine whether suboptimal equity portfolio allocation in part is associated with the cross-country variations in IPS. Consistent with economic reasoning we find robust indications that international portfolio allocation may play an important role in the development of IPS. More specifically, the quality of IPS improves with higher degrees of optimal international equity portfolio allocation of domestic and foreign investors.
| Item ID: | 54456 |
|---|---|
| Item Type: | Article (Research - C1) |
| ISSN: | 1873-8079 |
| Keywords: | financial globalization; investor protection standards; equity home bias; equity foreign bias |
| Date Deposited: | 05 Jul 2018 00:30 |
| FoR Codes: | 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350202 Finance @ 50% 35 COMMERCE, MANAGEMENT, TOURISM AND SERVICES > 3502 Banking, finance and investment > 350208 Investment and risk management @ 50% |
| SEO Codes: | 90 COMMERCIAL SERVICES AND TOURISM > 9001 Financial Services > 900199 Financial Services not elsewhere classified @ 100% |
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