Erschienen in:Midwest Finance Association 2012 Annual Meetings Paper
Umfang:
1 Online-Ressource (49 p)
Sprache:
Englisch
DOI:
10.2139/ssrn.1929189
Identifikator:
Entstehung:
Anmerkungen:
Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments September 16, 2011 erstellt
Beschreibung:
This paper examines institutions' portfolio allocation and performance in US securities. We test how information immobility, proxied by market correlation and cultural and geographical distance between the investors' home markets and the US, influences portfolio strategies. Consistent with theoretical predictions, foreign institutions' total investment in the US is negatively related to information immobility. In addition, information immobility is a significant driver of portfolio under-diversification, measured as industry concentration of portfolios. Similar to a sample of US institutions, industry concentrated foreign institutions outperform industry diversified foreign institutions in US securities. Concentration especially helps institutions with the most difficult access to information