1. MktRF (FB ? ) 1.109 * * * 1.158 * * * 1.104 * * * 1.161 * * * 1.104 * * * 1.160 * * * 1.112 * * * 1;*;SMB (FB + ) ?0.201 * * * ?0.188 * * * ?0.205 * * * ?0.190 * * * ?0.206 * * * ?0.191 * * * ?0.203 * * * ?0.190 * * *
2. We let the coefficient vary depending on FB's sign. The control regressors include the standard ones in gravitation models as defined in Table 2, and the FF world factor returns. Robust standard errors in parenthesis. * , * * and * * denote significance at the 10, 5, and 1 percent level, respectively. All regressions include fixed effects for time and holder country;EUR, on investor j's direct foreign holdings are regressed on covariates measuring, or related to, foreign bias (FB)