U.S. Investors' Emerging Market Equity Portfolios : A Security-Level Analysis /

We analyze a unique data set and uncover a remarkable result that casts a new light on the home bias phenomenon. The data are comprehensive, security-level holdings of emerging market equities by U.S. investors. We document, as expected, that at a point in time U.S. portfolios are tilted towards fir...

وصف كامل

التفاصيل البيبلوغرافية
المؤلف الرئيسي: Warnock, Francis
مؤلفون آخرون: Edison, Hali
التنسيق: دورية
اللغة:English
منشور في: Washington, D.C. : International Monetary Fund, 2003.
سلاسل:IMF Working Papers; Working Paper ; No. 2003/238
الوصول للمادة أونلاين:Full text available on IMF
الوصف
الملخص:We analyze a unique data set and uncover a remarkable result that casts a new light on the home bias phenomenon. The data are comprehensive, security-level holdings of emerging market equities by U.S. investors. We document, as expected, that at a point in time U.S. portfolios are tilted towards firms that are large, have fewer restrictions on foreign ownership, or are cross-listed on a U.S. exchange. The size of the cross-listing effect is striking. In contrast to the well-documented underweighting of foreign stocks, emerging market equities that are cross-listed on a U.S. exchange are incorporated into U.S. portfolios at full international capital asset pricing model (CAPM) weights. Our results suggest that information asymmetries play an important role in equity home bias and that the benefits of international risk sharing are limited to select firms.
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وصف مادي:1 online resource (32 pages)
التنسيق:Mode of access: Internet
تدمد:1018-5941
وصول:Electronic access restricted to authorized BRAC University faculty, staff and students