This dissertation contains three essays on international finance, focusing mainly on the investment preferences of investors when making foreign portfolio allocation decisions. In particular, it explores (i) the factors that influence investors' decisions to over- or under-weight foreign markets, (ii) the effect of home bias on portfolio performance, and (iii) the importance of bilateral linkages during and after the global financial crisis. Throughout these three chapters, I also assess similarities and differences between two assets, equities and bonds, and investigate distinctions between developed and emerging markets investors. The first chapter shows that international investors heavily tilt their foreign portfolios toward more familiar and less risky destinations, particularly those with more developed financial markets. The second chapter delves deeper into how investors allocate their portfolios between domestic and foreign assets, finding strong empirical evidence that actual portfolios are sub-optimally allocated and that home bias hinders risk-adjusted performance. Finally, the third chapter shows that bilateral trade linkages, market correlations, country risk, and the regulatory environment were important determinants of portfolio adjustment patterns during and after the global financial crisis. Taken as a whole, the results of my dissertation underscore the importance of recognizing the bilateral factors that play an important role influencing international investors' allocation decisions.
|Advisor:||Mann, Catherine L.|
|Commitee:||Gumbau-Brisa, Fabia, LeBaron, Blake, Nandy, Debarshi|
|School:||Brandeis University, International Business School|
|School Location:||United States -- Massachusetts|
|Source:||DAI-A 77/01(E), Dissertation Abstracts International|
|Subjects:||Business administration, Management, Economics, International Relations|
|Keywords:||Financial crises, Foreign investor, Home bias, International portfolio choice, Optimal portfolio allocation|
Copyright in each Dissertation and Thesis is retained by the author. All Rights Reserved
The supplemental file or files you are about to download were provided to ProQuest by the author as part of a
dissertation or thesis. The supplemental files are provided "AS IS" without warranty. ProQuest is not responsible for the
content, format or impact on the supplemental file(s) on our system. in some cases, the file type may be unknown or
may be a .exe file. We recommend caution as you open such files.
Copyright of the original materials contained in the supplemental file is retained by the author and your access to the
supplemental files is subject to the ProQuest Terms and Conditions of use.
Depending on the size of the file(s) you are downloading, the system may take some time to download them. Please be