This thesis includes two essays analyzing two separate topics. The first essay investigates the role of asymmetric information in explaining one of the major puzzles in International Finance. The second essay investigates what kind of performance information that the financial institutions use...

Equity home bias is one of the major puzzles in international finance. This paper investigates the impact of asymmetric information on equity home bias in a rational expectation model where portfolio managers differ in their levels of initial portfolio size and information acquisition is...