Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/169180
Authors: 
Koufadakis, Stylianos X.
Year of Publication: 
2016
Citation: 
[Journal:] SPOUDAI - Journal of Economics and Business [ISSN:] 2241-424X [Volume:] 66 [Year:] 2016 [Issue:] 1/2 [Pages:] 108-135
Abstract: 
The aim of this survey is to review the most prevailing developments regarding the existence of the closed-end funds' discounts and premiums and the factors which generate them. Despite the plethora of academic research conducted in order to reach a generally accepted explanation of the closed-end fund puzzle based on both the traditional and the behavioral approaches, particular attention is still required to be payed to the pricing of closed-end funds in the academic literature to date. As the divergence between the closed-fund market prices and their fundamental values offers great challenges to a possible interpretation, this study summarizes a set of conclusions that can help researchers and practitioners study better this financial asset category. This paper is organized as follows: Section 1 summarizes the basic reference for closed-end funds; Section 2 captures the different theories on the existence of closed-end fund puzzle; Section 3 analyzes the theories of discount according to the main traditional interpretations; Section 4 reviews the explanation of discounts taking into account the investor behavior arguments; Section 5 deals with closed-end funds in the international financial environment; and Section 6 provides the conclusions.
Subjects: 
Closed-end funds
discounts/premiums
JEL: 
G10
G12
G20
Document Type: 
Article

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