EconPapers    
Economics at your fingertips  
 

EMU Effects on Stock Markets: From Home Bias to Euro Bias

Giofré, Maela/M.
Authors registered in the RePEc Author Service: Maela Giofre' ()

MPRA Paper from University Library of Munich, Germany

Abstract: 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.

Keywords: financial integration; portfolio choice; home bias; information asymmetries (search for similar items in EconPapers)
JEL-codes: F21 F36 G11 G15 (search for similar items in EconPapers)
Date: 2008-05
New Economics Papers: this item is included in nep-eec and nep-fmk
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Published in International Research Journal of Finance and Economics 15 (2008): pp. 128-150

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/13926/1/MPRA_paper_13926.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:13926

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().

 
Page updated 2024-07-01
Handle: RePEc:pra:mprapa:13926