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Peer reviewed

Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook

Ed. by Ziegler, Dieter

CiteScore 2018: 0.06

SCImago Journal Rank (SJR) 2018: 0.115
Source Normalized Impact per Paper (SNIP) 2018: 0.203

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Volume 59, Issue 2


There’s No Place Like Home: Investors’ Home Bias in Germany, 1898-1934

Andreas Neumayer (M.Sc.),
  • Department of Economics, University of Hohenheim. Chair of Economic and Social History, Wollgrasweg 49, D-70599 Stuttgart, Germany
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Published Online: 2018-12-31 | DOI: https://doi.org/10.1515/jbwg-2018-0015


This article studies investors’ expectations and investment decisions in regional stock exchanges in Germany from 1898 to 1934. Investments in stocks are particularly interesting, because research has identified a gap between model predictions of individual investment behaviour and actual investment behaviour. So far there is little information about individual investors or their characteristics in historical periods. To improve the interpretation of investors’ stock market behaviour, I look at investment behaviour and influences on that behaviour over time. I examine data on investors’ characteristics to understand local investment biases using data from regional stock exchanges in Germany from 1898-1934. The statistical analysis first indicates that local investment was clearly important during this period. Then, challenging these findings and analysing different sub-samples, it is suggested that investors’ home bias is potentially overestimated. Previous studies, which found evidence of local investment biases in Germany have presumably overestimated this effect.

JEL Classification: G 11; G 41; N 23; N 24

Keywords: Home bias; investment decisions; stock market behaviour; historical investors; Investitionsentscheidungen; Finanzmarktverhalten; Historische Investoren

About the article

Andreas Neumayer (M.Sc.),

Andreas Neumaye M.Sc. studied Business Administration and Economics (B.Sc.) at the University of Hohenheim from 2009 to 2012, with majors in economic history and history. In 2015, he obtained his Masters degree, with a focus on economic history, history, political science and business education, from the University of Hohenheim. In January 2016, Andreas Neumayer commenced working as a research assistant to Professor Sibylle Lehmann-Hasemeyer at the University of Hohenheim´s Institute of Economics, Economic and Social History, with Agricultural History.

Published Online: 2018-12-31

Published in Print: 2018-11-27

Citation Information: Jahrbuch für Wirtschaftsgeschichte / Economic History Yearbook, Volume 59, Issue 2, Pages 447–469, ISSN (Online) 2196-6842, ISSN (Print) 0075-2800, DOI: https://doi.org/10.1515/jbwg-2018-0015.

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