StudentShare solutions
Triangle menu

Home Bias Puzzle - Research Paper Example

Nobody downloaded yet

Extract of sample
Home Bias Puzzle

This is due to the fact that changes in the domestic economic environment are less likely to affect the investments in international markets. Jeske (2001, p. 37) explains that portfolios which are invested outside the domestic market are not considered to be risky because the risk of the investment is distributed in several markets. The reasons why the home bias is common among investors raise puzzles among economists. This paper analyzes the explanations for home bias and evaluates the reason why it is convincing, which makes it a continuous phenomenon in finance and investment economics. There are various barriers to the flow of capital across nations due to less or lack of economic integration. Sendi and Bellalah (2010, p. 78) assert that this explains the home bias of investors. The economic barriers include restrictive economic laws, high information costs, international taxation, high transaction costs and political boundaries which affect foreign investment. This illustrates that investment in foreign equities is costly to the investors and their propensity for domestic investment. These barriers seem convincing as a valid justification for home bias. However, the home bias puzzle continues because the bias continues even after the removal of these restrictions in the modern global economy. Shikuan and Cheng-Da (2011, p. 1 ...Show more
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Home Bias Puzzle Research Paper Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.net/finance-accounting/55078-home-bias-puzzels-finance-and-investements
(Home Bias Puzzle Research Paper Example | Topics and Well Written Essays - 750 Words)
https://studentshare.net/finance-accounting/55078-home-bias-puzzels-finance-and-investements.
“Home Bias Puzzle Research Paper Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.net/finance-accounting/55078-home-bias-puzzels-finance-and-investements.
  • Cited: 0 times

Summary

HOME BIAS PUZZLE Instructor Institution Date Introduction According to Kho, Stulz and Warnock (2009, p. 597), the propensity for investing in domestic equities as opposed to international investment is what is referred to as home bias. Regardless of the advantages of diversification of investments into international markets, investors prefer to invest locally and as a result, there is a home bias puzzle…
Home Bias Puzzle
Read Text Preview
Save Your Time for More Important Things
Let us write or edit the research paper on your topic
"Home Bias Puzzle"
with a personal 20% discount.
Grab the best paper

Check these samples - they also fit your topic

Gender Bias In Coaching
As they say, once a lie is repeated many times over, it becomes a truth, no matter how false that truth is. It will side with the truth and may be called truth, but it will always remain a lie. According to Person (2010), gender typing is ‘attributing a person’s qualities, characteristics, attributes, or behaviour because of gender’.
10 pages (2500 words) Research Paper
Own-race bias
This recent increase in the multicultural population has helped to blur once concrete distinctions between races into more ambiguous distinctions. During the slavery era of this country, it is easy to see how people could view rigid, concrete social structures almost reminiscent of the British class system.
10 pages (2500 words) Research Paper
Media Bias CNN and FOX News on the Healthcare Debate
Hundreds of thousands of people watch news channels on a daily basis. These people start believing in what they see on these news channels. The views presented by the presenters are often enough to sway the people. It is an ideal way of controlling the minds of the people; their independent thoughts get swayed when they watch these news channels.
5 pages (1250 words) Research Paper
Puzzle of High Saving Rate in China - Myth and Reality
China is set to take over the American economy in the near future. This statement is being used by economy pundits these days with more frequency than ever before. Over the last decade, China has seen periods of tremendous growth and prosperity. Not only the Gross Domestic Product of the economy increased.
5 pages (1250 words) Research Paper
Gender Bias in Mathematics Achievement
Gender bias in Mathematics achievement is evident across most grades including K-12 grade. Various research studies have however, identified a number of themes that are distinct and dominant, which are significant in addressing and accounting for such variations by gender.
2 pages (500 words) Research Paper
Home Schooling
According to the report home schooling also brings families closer together. Each member of the family takes an active interest in the home education, sharing daily experience, brainstorming together on new ideas and topics to study, and communicating openly and frequently. Homes schooling is better way of educating kids.
8 pages (2000 words) Research Paper
Buying a home vs renting a home
However, before finalizing any house, there is a greater issue that has to be decided upon: buying or renting a house. Buying a house requires a lot of responsibility and a lot of hard work. Ownership though very tempting, is not
10 pages (2500 words) Research Paper
Gender bias in mathematic achievement
The second theme is in essence fundamental, in accounting for the gender bias in Mathematics achievement, and it relates to the attitudes
4 pages (1000 words) Research Paper
Media Bias
Media have tremendous power in setting cultural guidelines and in shaping political discourse. It is essential that news media, along with other institutions,
4 pages (1000 words) Research Paper
Evaluating Bias in Research
This is known as the first step of research. In this step, it entails identifying the research problem. The identification of the problems takes place through the development of a question that will require some answers. A good question will help
1 pages (250 words) Research Paper
Comments (0)
Click to create a comment
Let us find you another Research Paper on topic Home Bias Puzzle for FREE!
Contact us:
+16312120006
Contact Us Now
FREE Mobile Apps:
  • About StudentShare
  • Testimonials
  • FAQ
  • Blog
  • Free Essays
  • New Essays
  • Essays
  • The Newest Essay Topics
  • Index samples by all dates
Join us:
Contact Us