出版社：LLC “Consulting Publishing Company “Business Perspectives”
摘要：Finance theory suggests that investors should hold an internationally diversified portfolio.In practice,investors show a strong preference for domestic securities(equities and bonds).One of the explanations for this home bias is the existence of exchange rate risk.This paper tests whether the arrival of the euro has caused a decline in the home bias, and whether a possible decline is temporary or permanent.Our empirical findings suggest that the home bias has declined in Europe and that this decline is a permanent phenomenon.As expected,this decline is stronger in the EMU countries than in the non-EMU countries.We also find that EMU-based investors have switched from home to euroarea securities(regional bias).Finally,we test for the impact of institutional investors,as professional parties. Countries in which institutions manage a larger part of the financial assets exhibit larger international diversification.
