Proximity Bias in Investors’ Portfolio Choice

  • Ted Lindblom
  • Taylan Mavruk
  • Stefan Sjögren

Table of contents

  1. Front Matter
    Pages i-x
  2. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
    Pages 1-8
  3. Porfolio Theory, Decision-Making and Market Efficiency

    1. Front Matter
      Pages 9-9
    2. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 11-33
    3. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 35-60
    4. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 61-82
  4. Investor Behavior, Proximity Bias and Firms’ Capital Structure

    1. Front Matter
      Pages 83-83
    2. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 85-105
    3. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 107-139
    4. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 141-159
    5. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 161-182
  5. The Impact of Local Media, Portfolio Rebalancing and Financial Sophistication

    1. Front Matter
      Pages 183-183
    2. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 185-211
    3. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 213-239
    4. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 241-263
    5. Ted Lindblom, Taylan Mavruk, Stefan Sjögren
      Pages 265-282
  6. Back Matter
    Pages 283-291

About this book

Introduction

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.

 

Keywords

Investor behaviour Investment strategies Portfolio theory Utility theory Home bias Local bias Investor preferences Efficient Market Hypothesis

Authors and affiliations

  • Ted Lindblom
    • 1
  • Taylan Mavruk
    • 2
  • Stefan Sjögren
    • 3
  1. 1.University of GothenburgGothenburgSweden
  2. 2.University of Gothenburg GothenburgSweden
  3. 3.University of GothenburgGothenburgSweden

Bibliographic information

  • DOI https://doi.org/10.1007/978-3-319-54762-6
  • Copyright Information The Editor(s) (if applicable) and The Author(s) 2017
  • Publisher Name Palgrave Macmillan, Cham
  • eBook Packages Economics and Finance
  • Print ISBN 978-3-319-54761-9
  • Online ISBN 978-3-319-54762-6
  • About this book