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Familiarity Bias in Asset Allocation of Brazilian Investors

Bruno Ferman, Maurício Silveira Lersch, Claudia Emiko Yoshinaga


This article analyzes the portfolio allocation of investors in their employer's shares in order to verify whether it exists a version of home bias. Our sample comprises investors of a Brazilian broker. The proportion of allocation on the shares of their employer is statistically higher and economically significant when compared to a control sample of non-employees. To assure that our results are robust to the fact that investors may have been granted employers’ shares as a bonus compensation, we identified firms that explicitly do not use this compensation strategy. This finding shows the potential increase in risk exposure in the investment portfolios despite the rational concept of diversification.


asset allocation; behavioral finance; investment portolio; home bias

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