Overview
- 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
- Includes supplementary material: sn.pub/extras
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Table of contents (12 chapters)
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Front Matter
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Porfolio Theory, Decision-Making and Market Efficiency
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Front Matter
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Investor Behavior, Proximity Bias and Firms’ Capital Structure
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Front Matter
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The Impact of Local Media, Portfolio Rebalancing and Financial Sophistication
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Front Matter
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Back Matter
Keywords
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.
Authors and Affiliations
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.
Bibliographic Information
Book Title: Proximity Bias in Investors’ Portfolio Choice
Authors: Ted Lindblom, Taylan Mavruk, Stefan Sjögren
DOI: https://doi.org/10.1007/978-3-319-54762-6
Publisher: Palgrave Macmillan Cham
eBook Packages: Economics and Finance, Economics and Finance (R0)
Copyright Information: The Editor(s) (if applicable) and The Author(s) 2017
Hardcover ISBN: 978-3-319-54761-9Published: 16 August 2017
Softcover ISBN: 978-3-319-85473-1Published: 03 August 2018
eBook ISBN: 978-3-319-54762-6Published: 06 August 2017
Edition Number: 1
Number of Pages: X, 291
Number of Illustrations: 9 b/w illustrations