Beliefs and the equity home bias

IF 2.1 4区经济学 Q2 ECONOMICS

Economics Letters Pub Date : 2024-09-16 DOI:10.1016/j.econlet.2024.111983

Xinxin Zhu , Peiran Jiao , Jichuan Zong

引用次数: 0

Abstract

We investigate the belief-based mechanism that potentially drives the equity home bias puzzle using a novel experimental design. We find that geographical information causally shapes investor beliefs, leading to a home bias effect in beliefs. Participants expect higher returns and lower risk from local stocks compared to non-local ones. Loss probability strongly predicts risk perception, but its effect weakens when the stock is local. Yet, we do not find a home bias in investment choices.

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信念与房屋产权偏差

我们采用一种新颖的实验设计，研究了可能驱动股票住宅偏好之谜的基于信念的机制。我们发现，地理信息会影响投资者的信念，从而导致信念中的家乡偏差效应。与非本地股票相比，参与者预期本地股票的收益更高、风险更低。损失概率对风险认知有很强的预测作用，但当股票是本地股票时，损失概率的作用就会减弱。然而，我们并没有在投资选择中发现家乡偏差。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Economics Letters ECONOMICS-

CiteScore

3.20

自引率

5.00%

发文量

348

审稿时长

30 days

期刊介绍： Many economists today are concerned by the proliferation of journals and the concomitant labyrinth of research to be conquered in order to reach the specific information they require. To combat this tendency, Economics Letters has been conceived and designed outside the realm of the traditional economics journal. As a Letters Journal, it consists of concise communications (letters) that provide a means of rapid and efficient dissemination of new results, models and methods in all fields of economic research.