Work

Education and the local equity bias around the world

Year: 2015

Type: article

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.

Source: Journal of International Financial Markets Institutions and Money

DOI: 10.1016/j.intfin.2015.06.002

Authors: Udichibarna Bose, Ronald MacDonald, Serafeim Tsoukas

Institution: University of Glasgow

Language: English

Topic: Financial Markets and Investment Strategies

Subfield: Finance

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDGs: Reduced inequalities, Quality education

Open Access status: hybrid

Estimated APC paid: $2,930