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Financial education, investor protection and international portfolio diversification

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  • Giofré, Maela

Abstract

This paper investigates the effect of financial education on foreign portfolio investment. We show that higher investor financial education fosters international diversification, and that its role is particularly pronounced where information problems and monitoring costs are likely to be more severe, that is, in countries where protection of minority shareholders' rights is weaker.

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  • Giofré, Maela, 2017. "Financial education, investor protection and international portfolio diversification," Journal of International Money and Finance, Elsevier, vol. 71(C), pages 111-139.
    • Handle: RePEc:eee:jimfin:v:71:y:2017:i:c:p:111-139
    DOI: 10.1016/j.jimonfin.2016.11.004
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    More about this item

    Keywords

    Financial education; Home bias; International portfolio investments; Investor protection legislation;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • G30 - Financial Economics - - Corporate Finance and Governance - - - General

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