Unraveling the Closed-End Funds Pricing Puzzle: Some New Evidence
26 Pages Posted: 27 Jan 2004
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.
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