The information content of closed-end country fund discounts

Authors

  • John E. Richard Department of Finance and Business Economics, Wayne State University, Detroit, MI, USA
  • James B. Wiggins Department of Finance, Michigan State University, East Lansing, MI 48824, USA

DOI:

https://doi.org/10.1016/S1057-0810(00)00064-0

Keywords:

Investor sentiment, Closed-end fund, Discount

Abstract

This paper examines whether premiums and discounts on closed-end country mutual funds (CECFs) contain useful information about future returns. We find that higher CECF premiums are associated both with higher future returns on the relevant foreign market index and with higher future NAV returns after controlling for the foreign market return. CECFs trading at large discounts are not necessarily bargains, because their future NAV performance can be expected to be relatively poor. © 2000 Elsevier Science Inc. All rights reserved.

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Published

2000-06-30

How to Cite

Richard, J. E., & Wiggins, J. B. (2000). The information content of closed-end country fund discounts. Financial Services Review, 9(2), 171–181. https://doi.org/10.1016/S1057-0810(00)00064-0

Issue

Vol. 9 No. 2 (2000): Financial Services Review

Section

New Original Submission

License

Copyright (c) 2000 JAI Press Inc.

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