Geographic distance plays an important role in many disciplines like economic geography, trade or demography. In international economics and finance, it is primarily used as a substitute of transaction costs in gravity equations of bilateral trade in goods and assets. This paper is a synthesis...

I examine whether the effect of physical distance on the geography of international portfolio investments undergoes an informational or a cultural channel. Using two measures to disentangle the effects of the physical distance, namely the cultural distance proposed by Kogut and Singh (1988), and...

This paper implements a parsimonious and practical methodology to examine the diversification potential of international equity portfolios. The analysis shows that the Portfolio Diversification Index (Rudin, A.M., and Morgan, J.S., Journal of Portfolio Management [2006]) efficiently replicates a...

The objective of this paper is to examine Turkish investors' foreign asset holdings from the perspective of both the “international portfolio diversification” and the “home bias” literature using asset holdings data from the IMF's “Coordinated Portfolio Investment Survey” (CPIS). For...

I examine the international diversification gains from the perspective local investors using MSCI index data for 48 stock markets. I implement a framework recently proposed by Rudin and Morgan (2006, Journal of Portfolio Management). Based upon a principal components analysis run over the...

I provide an analysis of the home bias in international equity investments using data for the year-end 2006. Distinguishing two components of the local equity preference – the “domestic country bias” indicating whether local investors overinvest the domestic market, and the “foreign...

The way and context-specific scope of how money and banks are mirrored in citizens' minds is an expanding area of research in relation to economic psychology. Through the analysis of data collected from salaried employees, self-employed professionals, and small/medium enterprise [SME] owners,...