The Korean Journal of Financial Management (재무관리연구)
- Volume 13 Issue 1
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- Pages.311-340
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- 1996
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- 1225-0759(pISSN)
Empirical Evidence on Closed-End Mutual Fund Discounts
폐쇄형 투자신탁회사의 할인현상에 관한 실증연구
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Kim, Chang-Soo
(Department of Business Administration, College of Commerce and Law, Yonsei University)
- Published : 1996.06.30
Abstract
This paper investigates the determinants of discounts on closed-end mutual funds. Empirical tests on a panel of closed-end mutual funds show that the magnitude of discounts seems to be unequal for different types of funds. I find strong evidence on tax-timing option effect even after controlling for other variables which have been theorized to be important in determining discounts on closed-end mutual funds. Also, the uncertainty about the value of underlying assets in the fund's portfolio has a significant influence on discounts.
Keywords