Article ID Journal Published Year Pages File Type
7364658 Journal of International Financial Markets, Institutions and Money 2015 24 Pages PDF
Abstract
Using a panel of 38 economies, over the period 2001-2010, we analyse the link between different facets of education and diversification in international portfolios. We find that university education, mathematical numeracy, in addition to financial skill, play an important role in reducing home bias. After separating countries according to their level of financial development, we find that less developed economies with more university graduates, or with higher level of mathematical numeracy, have lower level of local equity bias compared to more developed countries. We also find that the beneficial effect of education is more pronounced during the most recent financial crisis, especially for economies with less developed financial markets.
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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