 Open-Ending of Closed-End Funds in the CR: Price and Discount Reaction - Empirical EvidenceJana Fajtová Czech Journal of Economics and Finance (Finance a uver), 2004, vol. 54, issue 1-2, 22-49 Abstract: This study focuses on the closed-end funds in the Czech Republic. Using event-study methodology and weekly data for 24 funds from July 1996 to July 2001, this paper investigates the price and discount reaction to key events associated with the open-ending of the closed-end funds. The findings reveal statistically significant reactions to the change of the institutional framework. Positive abnormal returns and a substantial decrease in discounts can be observed during the announcement of the legal change. However, there was no statistically significant reaction to public announcements of the open-ending of individual closed-end funds. Apparently, the anticipation of such announcements was incorporated in the reaction to general legal change. Finally the study gives evidence of different discounts for two particular fund groups. These results lend considerable support to the conclusion that the Czech fund market is efficient, at least in its ability to respond to new essential information. Keywords: open-ending of closed-end funds; closed-end funds; discount; event study (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:54:y:2004:i:1-2:p:22-49 Access Statistics for this article More articles in Czech Journal of Economics and Finance (Finance a uver) from Charles University Prague, Faculty of Social Sciences Contact information at EDIRC. |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.