Home asset bias

(redirected from Home Bias)

Home asset bias

The tendency of investors to over invest in their own county's assets.

Home Asset Bias

The fact that an investor is more likely to invest in assets that are in his/her own country than in similarly or better priced assets in another country. A variety of factors may explain the home asset bias, including government interventions such as tariffs. However, it is most likely that an investor simply has the most and the best information on assets in his/her own country.
References in periodicals archive ?
To focus on home bias and other prominent industry trends, Janus Henderson tracked the average allocations across the thousands of advisor models it analyzes.
Matches played in stadiums with a running track act as a deterrent to home bias, with greater impartiality in decision making prevalent among referees (Scoppa, 2008).
This home bias phenomenon refutes the implication about investor behavior developed in many asset pricing models.
O termo home bias foi documentado pela primeira vez por French and Poterba (1991), que comprovaram a preferencia dos investidores por acoes domesticas que de outros paises.
A home bias due to referee calls has been extensively studied, and one purveying theory is that under duress, the crowd noise prompts referees to make decisions that support the home team (Nevill, Balmer, and Williams 2002; Sutter and Kocher 2004; Unkelbach and Memmert 2010).
amp;nbsp;"Almost every [soccer fan] has a very strong opinion, but of course these opinions often are not so right, mainly because there is usually a strong home bias," Feindt told International Business Times this week.
Also, Indians settled outside India have a home bias towards investments and hence, withLTCML's branch in DIFC, we endeavour to cater tosuch HNIs based in UAE and the neighbouring countries.
FA Cup hosts MK Dons show a strong home bias on paper, but Burnley won 5-0 there a couple of weeks back so it's hardly Fort Knox, is it?
To counter growing foreign exchange risk we also recommend a slightly greater home bias.
Individuals residing in the Middle East have a strong home bias with the majority of their assets invested in the domestic economy.
Low and stable interest rate and well-known home bias of Japanese investors have kept this situation under control, but there is no guarantee that the low interest rate will remain forever.
The previously strong home bias for investments is now being actively discouraged as government pension funds are being directed to higher-yielding foreign assets, [while] the previous large current account surplus (which implied yen-denominated assets would always do well) has now turned into a deficit.