Skip to main content
Article
What’s in a Name: An Experimental Examination of Investor Behavior
Faculty Publications
  • Lucy Ackert, Kennesaw State University
  • Bryan K. Church, Georgia Institute of Technology - Main Campus
  • James G. Tompkins, IV, Kennesaw State University
  • Ping Zhang, Syracuse University
Department
Economics, Finance, & Quantitative Analysis
Document Type
Article
Publication Date
1-1-2005
Abstract

A fundamental unresolved issue is whether information asymmetries underlie investors' predisposition to invest close to home (i.e., domestically or locally). We conduct experiments in the United States and Canada to investigate agents' portfolio allocation decisions, controlling for the availability of information. Providing participants with information about a firm's home base, without disclosing its specific identity, is not sufficient to change investment behavior. Rather, participants need to know a firm's name and home base. Additional evidence indicates that participants have a greater perceived familiarity with local and domestic securities and, in turn, invest more in such securities.

Citation Information
Lucy Ackert, et al. "What's in a Name? An Experimental Examination of Investment Behavior." Review of Finance 9.2 (2005): 281-304.