Skip Navigation

This Article
Right arrow Full Text (PDF)
Right arrow Alert me when this article is cited
Right arrow Alert me if a correction is posted
Services
Right arrow Email this article to a friend
Right arrow Similar articles in this journal
Right arrow Similar articles in ISI Web of Science
Right arrow Alert me to new issues of the journal
Right arrow Add to My Personal Archive
Right arrow Download to citation manager
Right arrow Search for citing articles in:
ISI Web of Science (69)
Right arrowRequest Permissions
Google Scholar
Right arrow Articles by Huberman, G.
Right arrow Search for Related Content
Social Bookmarking
Add to CiteULike   Add to Connotea   Add to Del.icio.us  
What's this?

Rev Fin 2001; 14:659-680
© 2001 the Society for Financial Studies

Familiarity Breeds Investment

Gur Huberman
Columbia University

Abstract

Shareholders of a Regional Bell Operating Company (RBOC) tend to live in the area which it serves, and an RBOC's customers tend to hold its shares rather than other RBOCs' equity. The geographic bias of the RBOC investors is closely related to the general tendency of households' portfolios to be concentrated, of employees' tendency to own their employers' stocks in their retirement accounts, and to the home country bias in the international arena. Together, these phenomena provide compeling evidence that people invest in the familiar while often ignoring the principles of portfolio theory.


Add to CiteULike CiteULike   Add to Connotea Connotea   Add to Del.icio.us Del.icio.us    What's this?


This article has been cited by other articles:


Home page
 Review of FinanceHome page
P. Sercu and R. Vanpee
Estimating the Costs of International Equity Investments
Review of Finance, August 22, 2008; (2008) rfn021v1.
[Abstract] [Full Text] [PDF]

Home page
 Review of FinanceHome page
W. N. Goetzmann and A. Kumar
Equity Portfolio Diversification
Review of Finance, March 28, 2008; (2008) rfn005v1.
[Abstract] [Full Text] [PDF]

Home page
 REV FINANC STUDHome page
M. Massa and A. Simonov
Hedging, Familiarity and Portfolio Choice
Rev. Financ. Stud., June 1, 2006; 19(2): 633 - 685.
[Abstract] [Full Text] [PDF]

Home page
 REV FINANC STUDHome page
V. Polkovnichenko
Household Portfolio Diversification: A Case for Rank-Dependent Preferences
Rev. Financ. Stud., December 1, 2005; 18(4): 1467 - 1502.
[Abstract] [Full Text] [PDF]

Home page
 REV FINANC STUDHome page
H. H. Cao, T. Wang, and H. H. Zhang
Model Uncertainty, Limited Market Participation, and Asset Prices
Rev. Financ. Stud., December 1, 2005; 18(4): 1219 - 1251.
[Abstract] [Full Text] [PDF]

Home page
 Journal of the Academy of Marketing ScienceHome page
M. Singh, S. Faircloth, and A. Nejadmalayeri
Capital Market Impact of Product Marketing Strategy: Evidence From the Relationship Between Advertising Expenses and Cost of Capital
Journal of the Academy of Marketing Science, October 1, 2005; 33(4): 432 - 444.
[Abstract] [PDF]

Home page
 REV FINANC STUDHome page
S. Sarkissian and M. J. Schill
The Overseas Listing Decision: New Evidence of Proximity Preference
Rev. Financ. Stud., July 1, 2004; 17(3): 769 - 809.
[Abstract] [Full Text] [PDF]

Home page
 REV FINANC STUDHome page
J. Peress
Wealth, Information Acquisition, and Portfolio Choice
Rev. Financ. Stud., July 1, 2004; 17(3): 879 - 914.
[Abstract] [Full Text] [PDF]

Home page
 REV FINANC STUDHome page
G. Grullon, G. Kanatas, and J. P. Weston
Advertising, Breadth of Ownership, and Liquidity
Rev. Financ. Stud., April 1, 2004; 17(2): 439 - 461.
[Abstract] [Full Text] [PDF]


Disclaimer:
Please note that abstracts for content published before 1996 were created through digital scanning and may therefore not exactly replicate the text of the original print issues. All efforts have been made to ensure accuracy, but the Publisher will not be held responsible for any remaining inaccuracies. If you require any further clarification, please contact our Customer Services Department.