One possible explanation for home bias is that investors may obtain indirect international diversification benefits by … tests to examine the diversification potential of multinational firms and foreign market indices for investors domiciled in … multinational stocks. However, there is weak evidence that U.S. multinationals provided global diversification benefits in the full …

Using an extensive new data set on U.S. and U.K.-traded closed- end funds, we examine the diversification benefits from … emerging equity markets and the extent of their integration with global capital markets. To measure diversification benefits … significant diversification benefits for the U.K. country funds, but not for the U.S. funds. The difference appears to relate to …

In this paper we examine the correlation structure of the major world equity markets over 150 years. We find that … 19th and 20th centuries. Our analysis suggests that the diversification benefits to global investing are not constant …, and that they are currently low compared to the rest of capital market history. We decompose the diversification benefits …

unexploited gains from further international diversification. Mutual funds investing globally could achieve better risk …

unexploited gains from further international diversification. Mutual funds investing globally could achieve better risk …

equilibrium. We construct an estimate of the world portfolio of shares available to investors who are not controlling shareholders …. This available world portfolio differs sharply from the world market portfolio. In regressions explaining the portfolio … weights of U.S. investors, the world portfolio of available shares has a positive significant coefficient but the world market …