Paper by Prof. Dvorak considers domestic, foreign investors

Tomas Dvorak, assistant professor of economics, has written a paper to be published in the Journal of Finance. The paper, "Do Domestic Investors Have an Information Advantage? Evidence from Indonesia," on whether domestic investors in emerging stock markets earn higher profits than foreign investors. His paper investigates two arguments: that domestic investors have an advantage because information does not travel, and that foreign investors have an advantage because of experience and expertise.