Pandej ChintrakarnMahidol University International College. Business Administration Division2015-08-032018-12-252019-11-012015-08-032018-12-252019-11-0120152010The Empirical Economics Letters. Vol. 9, No. 5 (2010), 459-465.https://repository.li.mahidol.ac.th/handle/20.500.14594/47995Portes and Rey (2005) employ a gravity model to analyze bilateral crossborder equity flows and find that increase in the distance of 1% lowers bilateral crossborder equity flows between 0.66% and 0.88%. Applying the Poisson pseudomaximum likelihood (PPML) estimators reveals that although distance which is a proxy for some information costs still has a significant, negative effect on international asset transactions, the magnitude of the coefficient are generally of much smaller than documented in Portes and Rey (2005). That is, an increase in the distance of 1% lowers bilateral cross-border equity flows between 0.39% and 0.56%.engMahidol UniversityEquity flowsCross-border portfolio investmentInformation asymmetriesGravity modelHome biasArticle