Foreign Market Portfolio Concentration and Performance
| Autor: | Sturla Lyngnes Fjesme |
|---|---|
| Rok vydání: | 2019 |
| Předmět: |
Economics and Econometrics
Measure (data warehouse) 050208 finance Portfolio concentrations Norway Investment strategy Financial economics 05 social sciences Closeness Norwegian language.human_language Stock exchanges Test (assessment) Performances Stock exchange Accounting 0502 economics and business Foreign markets language Portfolio Hofstede's cultural dimensions theory Business 050207 economics Finance |
| Zdroj: | Financial Management |
| ISSN: | 1556-5068 |
| DOI: | 10.2139/ssrn.3722727 |
| Popis: | Using security holdings of 49,857 foreign investors on the Oslo Stock Exchange (OSE), I test whether concentrated investment strategies in international markets result in excess risk‐adjusted returns. I find that investors with higher learning capacity increase returns, while investors with lower learning capacity decrease returns from the portfolio concentration. I measure learning capacity as institutional classification, geographical proximity to Norway, and cultural closeness to Norwegian investors (as based on the Hofstede cultural closeness measures). I conclude, consistent with the information advantage theory, that concentrated investment strategies in foreign markets can be optimal (disastrous) for investors with higher (lower) learning capacity. |
| Databáze: | OpenAIRE |
| Externí odkaz: |
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