Proximity Bias in Investors' Portfolio Choice / by Ted Lindblom, Taylan Mavruk, Stefan Sjögren.

Format:

Book

Author/Creator:

Lindblom, Ted., Author.

Mavruk, Taylan., Author.

Sjögren, Stefan, Author.

Language:

English

Subjects (All):

Financial services industry.

Capital market.

Financial Services.

Capital Markets.

Local Subjects:

Financial Services.

Capital Markets.

Physical Description:

1 online resource (290 pages) : illustrations, tables

Edition:

1st ed. 2017.

Place of Publication:

Cham : Springer International Publishing : Imprint: Palgrave Macmillan, 2017.

Summary:

This book helps readers understand the widely documented distortion in the portfolio choice of individual investors toward proximate firms - the proximity bias phenomenon. First, it recapitulates the fundamentals of modern portfolio theory. It then goes on to describe and demonstrate different approaches on how to measure proximity bias and identifies and examines potential motives and reasons for such a bias. In addition, the book presents new analysis on the financial effects of individual investors' proximity bias, explaining and contributing with possible policy implications on their portfolio distortion. This book will be of interest to students and researchers, as well as decision-makers in business firms and households. .

Contents:

Chapter 1: Investor portfolio choice and portfolio theory

Chapter 2: Decision-making-Rational, Bounded or Behaviorally biases

Chapter 3: Market efficiency and the standard asset pricing models used to test market efficiency

Chapter 4: The Financial Behavior of Individual Investors

Chapter 5: The Measurement of Proximity Bias

Chapter 6: Motives and Reasons for Proximity bias

Chapter 7: Local Bias and Capital Structure

Chapter 8: Local news and active trading

Chapter 9: Portfolio rebalancing by individual investors and flight to safety

Chapter 10. The relation between local bias, international home bias and financial sophistication

Chapter 11: Conclusions and implications.

Notes:

Includes bibliographical references and index.

ISBN:

9783319547626

3319547623