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Home Bias, an Academic Puzzle

2016; Oxford University Press; Volume: 20; Issue: 6 Linguagem: Inglês

10.1093/rof/rfw007

1875-824X

George Andrew Karolyi,

Financial Literacy, Pension, Retirement Analysis

Only 16% (23%) of all empirical studies published in the top four (fourteen) Finance journals examine non-US markets, a fraction that is well below measures reflecting their economic importance. This "home bias" measure fluctuates across years with a weakly declining trend. There is also a "foreign bias" in which some non-US countries are more frequently the subject of published papers than others. I am able to explain only a small fraction of either the home-bias or the foreign-bias puzzles. Surprisingly, there are on average 2.01 higher annual cumulative citations per non-US paper published relative to cohort-matched US-focused papers.