International Diversification
Diversification
Solnik (1974)
Effectiveness of diversification in reducing risk?
Amount of shares for reasonable diversification?
Another reasons for overseas investment
Growth Opportunities
Specific Firm and Industry Opportunity
Possible Pains
Solnik (1996)
Growth in international capital flows and market integration raised the general level of correlation
Correlation increase in periods of high market volatility?
Why correlation and volatility increase over time?
You and Daigler (2010)
Relation between correlation and SD in international deviation
Home Bias
Possible Explantations
Christopher et al. (2011)
Matching
Behavioural Bias
Institutional Factors
Culture factors of institutional investors' home countries explain home bias?
Measure of Home Bias
Culture Variables
Masculinity
Long-term Orientation
Individualism
Uncertainty Avoidance
Britain - Low Home Bias, more masculinity and long-term orientation while relatively less individualism