Russia Crushes the U.S. in Corporate Disclosure Quality

Russian Su-25 attack aircraft release smoke in the colors of the Russian flag while flying over the Red Square in Moscow on May 9, 2013 Photograph by Yuri Kadobnov/AFP via Getty Images

China’s biggest e-commerce player, Alibaba, is expected to file for its initial public offeringin the next few days. Even though the company is expected to list its shares on the New York Stock Exchange, a lot of American investors may opt to stay on the sidelines, simply because Alibaba is a non-U.S. company. That would be an example of a well-known concept called home bias, which is a nice way of saying American investors have a tendency to be xenophobic about overseas stocks.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.