International diversification at home and abroad
By: Fang Cai and Francis E. Warnock.
Contributors: Warnock, Francis E.
Series: International finance discussion papers ;; no. 793; International finance discussion papers (Online) ;; no. 793.
Publisher: Federal Reserve Board
Published: 2004
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Description: "We analyze foreigners and domestic institutional investors holdings of U.S. equities and find common preferences for large firms and firms that are diversified internationally. The domestic preference for internationally diversified firms implies that investors might obtain substantial international diversification by investing at home.  Using an international factor model, we show that exposure to foreign equity markets is indeed greater for domestic firms that are more diversified internationally, suggesting that at least some of the home-grown foreign exposure translates into international diversification benefits.  After accounting for home-grown foreign exposure, the share of foreign equities in U.S.  portfolios doubles to 24 percent, greatly reducing the observed home bias"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/13/2004.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.