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 …

We provide an analysis of frontier market equities with respect to world market integration anddiversification … integration, as well as integration dynamics across countries. We show that frontier markets have low integration with the world … market and thereby offer significant diversification benefits …

We conjecture that partially segmented stock indexes that are characterized by low correlation with the world market …, we do not observe a similar pattern for country indexes. Thus, cross-industry diversification is superior to cross …-country diversification. The international diversification potential of industries does not vanish during volatile periods. Subsample analyses …