Proximity Bias in Investors’ Portfolio Choice

Authors: Lindblom, Ted, Mavruk, Taylan, Sjögren, Stefan

    • Provides a detailed discussion of the economic cost of proximity bias
    • Expands on the impacts of proximity bias beyond portfolio diversification to the welfare of households and the cost of capital for firms
    • Discusses the validity of different measurement methods
    • Issues are explored at both the household level and the firm level
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eBook 95,19 €
price for Spain (gross)
  • ISBN 978-3-319-54762-6
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 119,59 €
price for Spain (gross)
  • ISBN 978-3-319-54761-9
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
About this book

This book helps readers understand the widely documented distortion in the portfolio choice of individual investors toward proximate firms – the proximity bias phenomenon. First, it recapitulates the fundamentals of modern portfolio theory. It then goes on to describe and demonstrate different approaches on how to measure proximity bias and identifies and examines potential motives and reasons for such a bias. In addition, the book presents new analysis on the financial effects of individual investors’ proximity bias, explaining and contributing with possible policy implications on their portfolio distortion. This book will be of interest to students and researchers, as well as decision-makers in business firms and households.

About the authors

Ted Lindblom is a Professor at the School of Business, Economics and Law at the University of Gothenburg, Sweden. His current research focuses on bank regulation and corporate finance with a particular focus on corporate governance, capital budgeting and financial structure decisions.

Taylan Mavruk is an Assistant Professor of Business Administration in Finance at the School of Business, Economics and Law at the University of Gothenburg, Sweden. His research focuses on empirical portfolio choice, home bias, local bias, and insider trading.

Stefan Sjögren is an Associate Professor in the Department of Business Administration at the School of Business, Economics and Law, at the University of Gothenburg, Sweden. His research interests cover a broad range of corporate finance issues and include publications on valuation, capital structure, venture capital, capital budgeting, deregulation, law and finance and efficiency measurem

ent.

Table of contents (12 chapters)

  • Introduction

    Lindblom, Ted (et al.)

    Pages 1-8

    Preview Buy Chapter 30,19 €
  • Investors’ Portfolio Choice and Portfolio Theory

    Lindblom, Ted (et al.)

    Pages 11-33

    Preview Buy Chapter 30,19 €
  • Decision-Making—Rational, Bounded, or Behavioral

    Lindblom, Ted (et al.)

    Pages 35-60

    Preview Buy Chapter 30,19 €
  • Market Efficiency and the Standard Asset Pricing Models Used to Test Market Efficiency

    Lindblom, Ted (et al.)

    Pages 61-82

    Preview Buy Chapter 30,19 €
  • The Financial Behavior of Individual Investors

    Lindblom, Ted (et al.)

    Pages 85-105

    Preview Buy Chapter 30,19 €

Buy this book

eBook 95,19 €
price for Spain (gross)
  • ISBN 978-3-319-54762-6
  • Digitally watermarked, DRM-free
  • Included format: PDF, EPUB
  • ebooks can be used on all reading devices
  • Immediate eBook download after purchase
Hardcover 119,59 €
price for Spain (gross)
  • ISBN 978-3-319-54761-9
  • Free shipping for individuals worldwide
  • Usually dispatched within 3 to 5 business days.
  • The final prices may differ from the prices shown due to specifics of VAT rules
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Bibliographic Information

Bibliographic Information
Book Title
Proximity Bias in Investors’ Portfolio Choice
Authors
Copyright
2017
Publisher
Palgrave Macmillan
Copyright Holder
The Editor(s) (if applicable) and The Author(s)
eBook ISBN
978-3-319-54762-6
DOI
10.1007/978-3-319-54762-6
Hardcover ISBN
978-3-319-54761-9
Edition Number
1
Number of Pages
X, 291
Number of Illustrations and Tables
9 b/w illustrations
Topics