Multinational Production, Risk Sharing, and Home Equity Bias

2018 ◽  
Author(s):  
Fabio Pietro Ghironi ◽  
Marketa Wolfe
Keyword(s):  
Risk Sharing ◽  
Home Equity ◽  
Production Risk ◽  
Home Equity Bias ◽  
Multinational Production

The Effects Of Restricting Capital Outflows On Investment In An Open Economy

2011 ◽  
Vol 22 (4) ◽  
Author(s):  
Mark L. Muzere
Keyword(s):  
Developing Country ◽  
Open Economy ◽  
Foreign Investment ◽  
Economic Conditions ◽  
Investment Horizon ◽  
Font Size ◽  
Home Equity ◽  
Foreign Investors ◽  
Home Equity Bias ◽  
Capital Outflows

<p class="MsoBodyText2" style="text-align: justify; line-height: normal; margin: 0in 34.2pt 0pt 0.5in;"><span style="font-size: 10pt;"><span style="font-family: Times New Roman;">This paper considers the effects of restricting capital outflows on foreign investment in a developing country. It is shown that a developing country may restrict capital outflows if domestic economic conditions are poor, and it may liberalize capital outflows if domestic economic conditions are strong. Restricting capital outflows has large impact if the investment horizon is short. Furthermore, restricting capital outflows may discourage foreign investors from investing in the developing country. This result is consistent with the home equity bias.</span></span></p>

scholarly journals Investor Protection, Equity Returns, and Financial Globalization

2009 ◽  
Vol 45 (1) ◽  
pp. 135-168 ◽  
Author(s):  
Mariassunta Giannetti ◽  
Yrjö Koskinen
Keyword(s):  
Stock Returns ◽  
Stock Price ◽  
Investor Protection ◽  
Portfolio Allocation ◽  
Equity Returns ◽  
Expected Returns ◽  
Home Equity ◽  
Controlling Shareholders ◽  
Home Equity Bias ◽  
Allocation Decisions

AbstractWe study the effects of investor protection on stock returns and portfolio allocation decisions. In our theoretical model, if investor protection is weak, wealthy investors have an incentive to become controlling shareholders. In equilibrium, the stock price reflects the demand from both controlling shareholders and portfolio investors. Due to the high demand from controlling shareholders, the price of weak corporate governance stocks is not low enough to fully discount the extraction of private benefits. Thus, stocks have lower expected returns when investor protection is weak. This has implications for domestic and foreign investors’ stockholdings. In particular, we show that portfolio investors’ participation in the domestic stock market and home equity bias are positively related to investor protection and provide original evidence in their support.

Home Equity Bias and Industry Concentration

2007 ◽  
Author(s):  
Miguel A. Ferreira ◽  
Antonio F. Miguel
Keyword(s):  
Industry Concentration ◽  
Home Equity ◽  
Home Equity Bias

scholarly journals ANALISIS PREFERENSI RISIKO PRODUKSI DAN HUBUNGANNYA DENGAN KEIKUTSERTAAN PETANI DALAM PROGRAM ASURANSI USAHATANI PADI (AUTP) DI KABUPATEN TANJUNG JABUNG TIMUR

2020 ◽  
Vol 3 (1) ◽  
pp. 11-24
Author(s):  
Damel Fink Lybaws ◽  
Zulkifli Alamsyah ◽  
Saidin Nainggolan
Keyword(s):  
Risk Sharing ◽  
Research Result ◽  
Simple Random Sampling ◽  
Rice Production ◽  
Wetland Rice ◽  
Production Risk ◽  
Rice Farmers ◽  
Factors Of Production ◽  
Relationship Of ◽  
The Relationship

ABSTRACT Agriculture insurance is offered as one of the funding schemes relating to risk sharing in farming activities. Risk plays as important farmer’s decision to use inputs. This study aimed : (I) to describe the implementation o the AUTP Program in Tanjung Jabung Timur district. (II) Identify production factors influence the risk of rice production, (iii) Farmer’s preferences in acing the risk in rice production, (iv) the relationship of implementing the AUTP Program with behavior of rice farmers. The production function with Just and Pope model was used to knowing influence the risk of rice production, risk preference of khumbakar model was used to estimate risk of rice production. Chi Square test is used to determine the relationship of the implementation of the AUTP Program with behavior of rice farmers. The data obtain from 95 respondents who selected randomly using (simple random sampling). The research result showed that all factors of production effect field rice farming significantly. Meanwhile, partially the use of factors of production seed, NPK fertilizer, urea fertilizer, labour, and land area affect the production significantly on the risk of wetland rice. The average farmer’s preference tend to be risked taker, there is a significant relationship between the farmer participation in the AUTP Program and farmer’s preferences in facing the risk of rice production. Keywords : Risk, Production, Preference, Wetland Rice

scholarly journals Effects of underdeveloped equity market on investment

2007 ◽  
Vol 4 (4) ◽  
pp. 164-172
Author(s):  
Mark L. Muzere
Keyword(s):  
Market Economy ◽  
Asset Prices ◽  
Equity Market ◽  
Market Development ◽  
Open Market ◽  
Home Equity ◽  
Home Equity Bias

This paper uses a variant of the Allen, Bernardo, and Welch (2000) model in an open market economy to analyze the effects of equity market development on investment. A country’s underdeveloped equity market may discourage investors from investing in the country. Consequently, an underdeveloped equity market may contribute to home equity bias. Asset prices in a less developed equity market tend to be lower. The results suggest that a government may need to facilitate the development of its equity market to attract investment

scholarly journals Does Asymmetric Information Cause the Home Equity Bias?

2005 ◽  
Author(s):  
Claudio Bravo-Ortega
Keyword(s):  
Asymmetric Information ◽  
Home Equity ◽  
Home Equity Bias

Conclusion

2017 ◽  
Author(s):  
Pierre-André Chiappori
Keyword(s):  
Higher Education ◽  
Risk Sharing ◽  
Social Issues ◽  
Family Economics ◽  
Transferable Utility ◽  
Production Risk ◽  
Male And Female ◽  
Roe V Wade ◽  
Matching Models ◽  
The Relationship

This concluding chapter discusses the progress that has been made with matching models on both the theoretical and the empirical front. Regarding theory, the power and the limits of the transferable utility (TU) model are now better understood. The TU framework can (admittedly under specific assumptions on preferences) encompass most aspects of family economics, including fertility, domestic production, risk sharing, and the consumption of public commodities. On the empirical side, the econometrics of matching models have seen several major advances, with the Choo-Siow model as a prime example. The chapter also considers what matching models teach us about reality, such as the asymmetry between male and female demand for higher education, and the relationship between assortative matching and inequality. Furthermore, a host of social issues can only be analyzed from a general equilibrium perspective; this is evident in the case of Roe v. Wade.

scholarly journals AGRICULTURAL INSURANCE IN ESTONIA – CURRENT SITUATION AND FARMERS’ WILLINGNESS TO USE CROP INSURANCE

2016 ◽  
Vol 10 (1) ◽  
pp. 122-128 ◽  
Author(s):  
Maire Nurmet ◽  
Katrin Lemsalu ◽  
Anne Põder
Keyword(s):  
Risk Management ◽  
Risk Sharing ◽  
Crop Insurance ◽  
Insurance Companies ◽  
Management Tool ◽  
Agricultural Risk ◽  
Agricultural Insurance ◽  
Production Risk ◽  
Farm Survey ◽  
Willingness To Use

Farmers are strongly exposed to agricultural risks and have to adapt their strategies to the new uncertainties resulting from the changes in the EU agricultural policy. So far, risk sharing strategies in the context of production risk management have received little attention in Estonia. The aim of the paper is to examine the current availability of agricultural insurance in Estonia and the farmers’ attitudes towards insurance as a risk management tool. The analysis is based on a farm survey conducted in 2015. At first, an overview on available insurance products is given. Secondly, farmers’ interest towards insurance and the connection between farm characteristics and the interest, is studied. The results show that availability of agricultural risk management instruments is limited in Estonia. Agricultural insurance includes protection against livestock production risks provided by two insurance companies, and there are no instruments for crop insurance available. The results of farm survey show that farmers’ interest towards crop-yield and crop income insurance is relatively limited. The main reasons cited by the farmers are too high insurance premiums and the lack of trust in the insurance provider honouring the insurance claim. Younger farmers were more interested in insurance.

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