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EMU Effects on Stock Markets: From Home Bias to Euro Bias Author info | Abstract | Publisher info | Download info | Related research | Statistics Giofré, Maela/M.
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The shift of perspective from a national basis to a Euro area basis, inevitably induced by EMU, has led member countries to a parallel shift from equity home bias to equity Euro bias. We interpret this evidence by means of a standard mean-variance portfolio selection model modified in order to include information asymmetries, considering the effect of the EMU integration process on equity markets through informational channels, real and financial. We find a stronger informational impact of the financial channel relative to the real channel in shaping EMU countries' equity portfolios after integration.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
13926.
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Date of creation: May 2008Date of revision:
Handle: RePEc:pra:mprapa:13926Contact details of provider: Postal: Schackstr. 4, D-80539 Munich, Germany Phone: +49-(0)89-2180-2219 Fax: +49-(0)89-2180-3900 Web page: http://mpra.ub.uni-muenchen.de More information through EDIRC
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Keywords: financial integration ; portfolio choice ; home bias ; information asymmetries ; Other versions of this item:
Find related papers by JEL classification: G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions G15 - Financial Economics - - General Financial Markets - - - International Financial Markets F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
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references Cited by : (explanations , Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile , click on "citations" and make appropriate adjustments.)
Balli, Faruk & Louis, Rosmy J. & Osman, Mohammad, 2008.
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MPRA Paper
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