Show simple item record

Equity Home Bias, Financial Integration, and Regulatory Reforms: Implications for Emerging Asia

dc.contributor.authorCyn-Young Park
dc.contributor.authorRogelio Jr. V. Mercado
dc.date.accessioned2015-01-24T13:13:01Z
dc.date.available2015-01-24T13:13:01Z
dc.date.issued2014-05-01
dc.identifier.urihttp://hdl.handle.net/11540/1293
dc.description.abstractWith increasing financial integration and improving regulatory quality, we expect equity home bias to decline. Drawing on the supportive evidence for such trends in advanced economies, this paper investigates the links between financial integration and regulatory quality; and equity home bias in emerging Asia. To test the significance, a pooled OLS estimation was used. The results show that greater global and regional financial integration and better regulatory quality significantly lower equity home bias against global and regional stocks. The estimates also find that the lag value of the home bias significantly lowers equity home bias against global and regional equities; while bank assets and stock market capitalization increase the said bias against global and regional equities. Interestingly, volatility of foreign exchange rate significantly increases equity home bias against regional stocks, but not for the home bias against global stocks. The results suggest that if ongoing financial regulatory reforms lead to less information asymmetry and lower transaction and information costs in emerging Asia, equity home bias will continue to decline, allowing for greater portfolio diversification and more efficient allocation of capital resources.
dc.publisherAsian Development Bank
dc.rightsCC BY 3.0 IGO
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.titleEquity Home Bias, Financial Integration, and Regulatory Reforms: Implications for Emerging Asia
dc.typeWorking Papers
dc.subject.expertRegional Development Finance
dc.subject.expertPublic Scrutiny of City Finances
dc.subject.expertNon-Bank Financial Institutions
dc.subject.expertLocal Government Finance
dc.subject.expertGovernment Financial Institutions
dc.subject.expertForeign and Domestic Financing
dc.subject.expertFinancial Risk Management
dc.subject.expertAssessing Corporate Governance
dc.subject.expertGood Governance
dc.subject.expertGovernance Approach
dc.subject.adbPublic Accounting
dc.subject.adbBusiness Financing
dc.subject.adbSubsidies
dc.subject.adbSocial Equity
dc.subject.adbEconomic Equity
dc.subject.adbProject Risks
dc.subject.adbProject Impact
dc.subject.adbPublic Administration
dc.subject.adbCorporations
dc.subject.naturalTaxing power
dc.subject.naturalTax administration and procedure
dc.subject.naturalTax policy
dc.subject.naturalEffect of taxation on labor supply
dc.subject.naturalDecentralization in government
dc.subject.naturalCommunity power
dc.subject.naturalCorporate divestment
dc.subject.naturalCivil government
dc.subject.naturalDelegation of powers
dc.subject.naturalEquality
dc.subject.naturalNeighborhood government
dc.subject.naturalSubnational governments
dc.subject.naturalDelivery of government services
dc.title.seriesADB Working paper Series on Regional Economic Integration
dc.title.volumeNO. 133
dc.contributor.imprintAsian Development Bank
oar.themeFinance
oar.themeGovernance
oar.themeSmall Medium Business
oar.adminregionAsia and the Pacific Region
oar.countryBangladesh
oar.countryBhutan
oar.countryIndia
oar.countryMaldives
oar.countryNepal
oar.countrySri Lanka
oar.countryBrunei Darussalam
oar.countryCambodia
oar.countryIndonesia
oar.countryLao People's Democratic Republic
oar.countryMalaysia
oar.countryMyanmar
oar.countryPhilippines
oar.countrySingapore
oar.countryThailand
oar.countryViet Nam
oar.countryCook Islands
oar.countryFiji
oar.countryKiribati
oar.countryMarshall Islands
oar.countryMicronesia, Federated States of
oar.countryNauru
oar.countryPalau
oar.countryPapua New Guinea
oar.countrySamoa
oar.countrySolomon Islands
oar.countryTimor-Leste
oar.countryTonga
oar.countryTuvalu
oar.countryVanuatu
oar.countryAfghanistan
oar.countryArmenia
oar.countryAzerbaijan
oar.countryGeorgia
oar.countryKazakhstan
oar.countryKyrgyz Republic
oar.countryPakistan
oar.countryTajikistan
oar.countryTurkmenistan
oar.countryUzbekistan
oar.countryChina, People’s Republic of
oar.countryHong Kong, China
oar.countryChina, People’s Republic of
oar.countryRepublic of Korea
oar.countryMongolia
oar.countryTaipei,China
oar.dep.sourceOREI
oar.identifierOAR-001196
oar.authorPark, Cyn-Young
oar.authorMercado, Rogelio Jr. V.
oar.importtrue
oar.googlescholar.linkpresenttrue


Files in this item

Thumbnail

This item appears in the following Collection(s)

  • Regional Economic Integration Working Paper Series
    The Asian Development Bank Working Paper Series on Regional Economic Integration focuses on topics relating to regional cooperation and integration in the areas of infrastructure and software, trade and investment, money and finance, and regional public goods. The series is a quick-disseminating, informal publication that seeks to provide information, generate discussion, and elicit comments.

Show simple item record