Equity Home Bias in International Finance

<p>This book provides a comprehensive and critical analysis of research outcomes on the equity home bias puzzle – that people overinvest in domestic stocks relative to the theoretically optimal investment portfolio. It introduces place attachment – the bonding that occurs between individuals and their meaningful environments – as a new explanation for equity home bias and presents a philosophically multi-paradigmatic view of place attachment.</p><p></p><p>For the first time a comprehensive and up-to-date review of the extant literature is provided demonstrating that place attachment is a contributing factor to 22 different topics in which variations of home bias are present. The author also analyses the social-psychological underpinnings of place attachment and considers the effect of multi-culturalism on the future of equity home bias.</p><p></p><p>The book’s unique approach discusses the issues in conceptual terms rather than through data and statistical methods. This multi- and inter-disciplinary book is an invaluable resource for graduate students and researchers interested in economics finance philosophy and/or methodology introducing them to a new line of research. </p>