Australia's equity home bias and corporate governance
Paper
Paper/Presentation Title | Australia's equity home bias and corporate governance |
---|---|
Presentation Type | Paper |
Authors | |
Author | Mishra, Anil V. |
Editors | Davis, Kevin |
Journal or Proceedings Title | Proceedings of the 12th Finsia-Melbourne Centre for Financial Studies Banking and Finance Conference: Developments in Financial Services: Theory Meets Practice |
Number of Pages | 32 |
Year | 2007 |
Place of Publication | Melbourne, Australia |
Web Address (URL) of Paper | http://www.melbournecentre.com.au/12th_Finsia_MCFS_Conference.htm |
Conference/Event | 12th Finsia-Melbourne Centre for Financial Studies Banking and Finance Conference: Developments in Financial Services: Theory Meets Practice |
Event Details | 12th Finsia-Melbourne Centre for Financial Studies Banking and Finance Conference: Developments in Financial Services: Theory Meets Practice Event Date 24 to end of 25 Sep 2007 Event Location Melbourne, Australia |
Abstract | This paper constructs the float adjusted measure of home bias and explores the determinants of Australia’s equity home bias by employing International Monetary Fund’s high quality dataset (2001 to 2005) on cross border equity investment. The paper finds that information asymmetries arising due to countries regulatory and legal environment have significant impact on Australia’s equity home bias. Trade linkages are found to have a significant impact on Australia’s equity home bias. Australian investors exhibit a preference for English speaking and common legal origin countries. Transaction costs, though statistically significant, have a very low value to suggest a minor impact on Australia’s home bias. This paper finds low diversification motives of Australian investors. |
Keywords | float; governance indicators; coordinated portfolio investment survey; rule of law |
ANZSRC Field of Research 2020 | 380107. Financial economics |
380110. International economics | |
Public Notes | No evidence of copyright restrictions on web site. |
Byline Affiliations | School of Accounting, Economics and Finance |
https://research.usq.edu.au/item/9y66v/australia-s-equity-home-bias-and-corporate-governance
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