Margarida Abreu|Victor Mendes|João A. C. Santos
Home country bias: Does domestic experience help investors enter foreign markets?
Instituto Superior de Gestão|Federal Reserve Bank of New York
paper investigates dynamics individuals investments leading decision make first investment abroad show investors first invest domestic securities time later invest abroad foreign securities also show investors trade often domestic market start invest abroad earlier findings suggest experience investors acquire trade domestic market key reason active investors enter foreign market earlier reason highly educated investors well investors financial knowledge arguably learning trading least important need trade much domestic market start investing foreign securities another reason investors start investing foreign securities able improve performance afterwards improvement performance constitutes evidence home country bias costly