Abstract
A trader-identified transactions database is employed to investigate: (1) the relation between order-flow imbalance and closed-end fund share prices and discounts; and (2) the role of institutional investors in closed-end funds. Empirical results are consistent with the hypothesis that buyers (sellers) of closed-end funds face upward-downward-) sloping supply (demand) curves. The results also demonstrate that ownership statistics do not accurately reflect institutional investors' importance in the closed-end fund market. The results fail to provide evidence that institutional investors offset the positions of individual investors or that institutional investors face systematic “noise trader risk.”.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 211-229 |
| Number of pages | 19 |
| Journal | Journal of Financial Research |
| Volume | 20 |
| Issue number | 2 |
| DOIs | |
| State | Published - Jun 1997 |
| Externally published | Yes |
ASJC Scopus subject areas
- Accounting
- Finance