We investigate the role of information asymmetries and inflation hedging in shaping international equity portfolios. We confirm, in a multinational setting, Cooper and Kaplanis [Cooper, I.A., Kaplanis, E., 1994. Home bias in equity portfolios, inflation hedging and international capital market equilibrium. Review of Financial Studies 7 (1), 45-60] result of no inflation hedging motive driving investors' behavior and find evidence of a crucial role for financial market development and trade linkages.Equity home bias Portfolio choice Inflation hedging Information asymmetries
To submit an update or takedown request for this paper, please submit an Update/Correction/Removal Request.