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Religion and Equity Home Bias

Author

Listed:
  • Junyong Lee

    (KAIST College of Business, Korea Advanced Institute of Science and Technology)

  • Kyounghun Lee

    (KAIST College of Business, Korea Advanced Institute of Science and Technology)

  • Frederick Dongchuhl Oh

    (KAIST College of Business, Korea Advanced Institute of Science and Technology)

Abstract

This study aims to examine whether religion influences equity home bias. Large volumes of international portfolio investment and religious characteristics data are obtained from 2001 to 2019. A panel OLS model is used to investigate the relationship between religion and equity home bias. We find that both religiosity and religious hierarchy in a country positively correlate with the level of home bias. In contrast, religious diversity negatively affects the degree of home bias. Overall, our study highlights the role of religion in explaining equity home bias.

Suggested Citation

  • Junyong Lee & Kyounghun Lee & Frederick Dongchuhl Oh, 2023. "Religion and Equity Home Bias," Open Economies Review, Springer, vol. 34(5), pages 1015-1038, November.
    • Handle: RePEc:kap:openec:v:34:y:2023:i:5:d:10.1007_s11079-022-09709-y
    DOI: 10.1007/s11079-022-09709-y
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    More about this item

    Keywords

    Equity home bias; Religion; Religiosity; Religious diversity; Religious hierarchy;
    All these keywords.

    JEL classification:

    • G11 - Financial Economics - - General Financial Markets - - - Portfolio Choice; Investment Decisions
    • G15 - Financial Economics - - General Financial Markets - - - International Financial Markets
    • Z12 - Other Special Topics - - Cultural Economics - - - Religion

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