Take Action

Home | Faculty & Research Overview | Research

Research Details

“Who is internationally diversified? Evidence from the 401(k) Plans of 296 Firms”, The Journal of Financial Economics

Abstract

Drawing on a novel database of the 401(k) plans of 296 firms, we examine the international equity allocations of 3.8 million individuals over the period 2005-2011. We find enormous cross-individual variation, ranging from zero to more than 75%, and strong cohort effects, with younger cohorts investing more internationally than older ones, and each cohort investing more internationally over time. Access to financial advice, lower fees, and more international fund choices are associated with higher international allocations, suggesting a role for plan design and policy. Education, financial literacy, and the fraction of foreign-born population in the ZIP code also have positive effects on international diversification, consistent with explanations based on familiarity bias and information barriers.

Type

Article

Author(s)

Enrichetta Ravina, Geert Bekaert, Wei-Yin Hu

Date Published

2017

Citations

Ravina, Enrichetta, Geert Bekaert, and Wei-Yin Hu. 2017. “Who is internationally diversified? Evidence from the 401(k) Plans of 296 Firms”. The Journal of Financial Economics. 124(1): 86-112.

KELLOGG INSIGHT

Explore leading research and ideas

Find articles, podcast episodes, and videos that spark ideas in lifelong learners, and inspire those looking to advance in their careers.
learn more

COURSE CATALOG

Review Courses & Schedules

Access information about specific courses and their schedules by viewing the interactive course scheduler tool.
LEARN MORE

DEGREE PROGRAMS

Discover the path to your goals

Whether you choose our Full-Time, Part-Time or Executive MBA program, you’ll enjoy the same unparalleled education, exceptional faculty and distinctive culture.
learn more

Take Action