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Published VersionCC BY-NC V4.0, Open Access
Journal article
Exploring the cost of home bias in international equity investment
International Review of Economics & Finance, Vol.106, pp.1-31
2026
Abstract
This paper examines the cost of home bias across 37 countries, employing various methodologies, including deadweight costs and implicit costs on international equity investment. Utilizing the DECO-MGARCH model, the average implicit cost of home bias on international equity investment for stock holdings ranges from 0.43 % per annum (France) to 7.15 % per annum (Türkiye), indicating a decrease compared to prior research findings. The average implicit cost of home bias in international equity investment for the sample countries is lower when considering human capital. The implicit costs of international equity markets are notably higher for emerging markets compared to developed ones. These implicit costs are found to be associated with factors such as information asymmetries, financial development, and institutional structures.
Details
- Title
- Exploring the cost of home bias in international equity investment
- Authors
- Anil V. Mishra (Corresponding Author) - Western Sydney UniversitySajid Anwar - University of the Sunshine Coast, Queensland, School of Business and Creative Industries
- Publication details
- International Review of Economics & Finance, Vol.106, pp.1-31
- Publisher
- Elsevier BV
- Date published
- 2026
- DOI
- 10.1016/j.iref.2026.104895
- ISSN
- 1873-8036; 1059-0560
- Copyright note
- © 2026 The Authors. Published by Elsevier Inc. This is an open access article under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
- Data Availability
- Data will be made available on request.
- Organisation Unit
- School of Business and Creative Industries; Indigenous and Transcultural Research Centre
- Language
- English
- Record Identifier
- 991199925202621
- Output Type
- Journal article
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