Research Repository

Education and the local equity bias around the world

Bose, Udichibarna and MacDonald, Ronald and Tsoukas, Serafeim (2015) 'Education and the local equity bias around the world.' Journal of International Financial Markets, Institutions and Money, 39. pp. 65-88. ISSN 1042-4431

1-s2.0-S1042443115000839-main.pdf - Published Version
Available under License Creative Commons Attribution.

Download (1MB) | Preview


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.

Item Type: Article
Uncontrolled Keywords: Home bias; Equity markets; International diversification; Education; Financial crisis
Subjects: H Social Sciences > HG Finance
Divisions: Faculty of Social Sciences
Faculty of Social Sciences > Essex Business School
Faculty of Social Sciences > Essex Business School > Essex Finance Centre
SWORD Depositor: Elements
Depositing User: Elements
Date Deposited: 19 Oct 2015 15:37
Last Modified: 18 Aug 2022 12:19

Actions (login required)

View Item View Item