ビジネス＆財務ジャーナル

Home-Bias Investment Measure: Evidence from a Repeated Experiment in Taiwan

Abstract

Wei-Lung Huang and Yan-Kai Fu

This study uses repeated experiment to explore the possible reasons of home-bias investment. The results indicated that the reasons for home-bias investment are information asymmetry or familiarity, resulting in over-investment in Taiwanese investment vehicles. The level of home-bias investment changed with the level of information asymmetry changes. A significant difference in home-bias investment was observed for different levels of education, investment experience, age, annual income and annual investment. Moreover, the difference in investment ratio did not change based on different levels of information asymmetry.