Understanding the equity home bias: Evidence from survey data

Norman Strong, Xinzhong Xu

Research output: Contribution to journalArticlepeer-review


This study uses survey data of fund managers' views on prospects for international equity markets to shed light on why investment portfolios are significantly biased towards domestic equities. We find that fund managers from the United States, the United Kingdom, continental Europe, and Japan show a significant relative optimism towards their home equity market. Where institutional factors have largely failed to explain the puzzle, our evidence lends support to behavioral explanations of the bias.
Original languageEnglish
Pages (from-to)307-312
Number of pages5
JournalReview of Economics and Statistics
Issue number2
Publication statusPublished - May 2003


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