Template-type: ReDIF-Paper 1.0
Author-Name: Giofré, Maela
Author-Email: maela.giofre@unito.it
Author-Workplace-Name: University of Turin
Author-Workplace-Homepage: http://www.est.unito.it/
Title: Financial Education, Investor Protection and International Portfolio Diversification.
Abstract: This paper investigates the tension between regulation and financial education in explaining international 
portfolio diversification. We show that higher investor's financial education fosters international investment and 
stronger minority investor protection legislation attracts inward investment. More interestingly, these factors 
appear to be substitute in enhancing investor's portfolio diversification: the role of financial education is 
particularly pronounced where information problems and monitoring costs are likely to be more severe, that is in 
countries where protection of minority shareholders' rights is weaker. We interpret this evidence as supportive of 
the conjecture that financial education lessens the informational constraints of foreign investors.
Length: 54 pages
Creation-Date: 2015-12
File-URL: http://www.est.unito.it/do/home.pl/Download?doc=/allegati/wp2015dip/wp_47_2015.pdf
File-Format: Application/PDF
Handle: RePEc:uto:dipeco:201547