Unraveling the Closed-End Funds Pricing Puzzle: Some New Evidence

26 Pages Posted: 27 Jan 2004

See all articles by Philip Russel

Philip Russel

Philadelphia University

Davinder K. Malhotra

Thomas Jefferson University

Abstract

We review the empirical results and some of the important explanations that have been advanced for the anomalous pricing of closed-end funds and conclude that none of the theories, either individually or collectively provide a sufficient explanation for the pricing of closed-end funds and thus the puzzle remains unsolved. We investigate additional evidence on the pricing of closed-end funds using data from 1994:2002 by exploring the relationship between closed-end fund discount and five explanatory variables. The results suggest that there is significant relationship between fund discount and fund family.

Suggested Citation

Russel, Philip and Malhotra, Davinder K., Unraveling the Closed-End Funds Pricing Puzzle: Some New Evidence. Available at SSRN: https://ssrn.com/abstract=493302 or http://dx.doi.org/10.2139/ssrn.493302

Philip Russel

Philadelphia University ( email )

Schoolhouse Lane and Henry Avenue
Philadelphia, PA Philadelphia 19144
United States

Davinder K. Malhotra

Thomas Jefferson University ( email )

Schoolhouse Lane and Henry Avenue
School of Business Administration
Philadelphia, PA 19144
United States

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