IDEAS home Printed from https://ideas.repec.org/a/fau/fauart/v54y2004i1-2p22-49.html
   My bibliography  Save this article

Open-Ending of Closed-End Funds in the CR: Price and Discount Reaction - Empirical Evidence

Author

Listed:
  • Jana Fajtová

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.

Suggested Citation

  • Jana Fajtová, 2004. "Open-Ending of Closed-End Funds in the CR: Price and Discount Reaction - Empirical Evidence," Czech Journal of Economics and Finance (Finance a uver), Charles University Prague, Faculty of Social Sciences, vol. 54(1-2), pages 22-49, January.
    • Handle: RePEc:fau:fauart:v:54:y:2004:i:1-2:p:22-49
    as

    Download full text from publisher

    File URL: http://journal.fsv.cuni.cz/storage/959_s_22-49.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Markovic-Hribernik Tanja & Vek Uros, 2013. "Do Mutual Fund Performance And The Abilities Of Fund Managers In Slovenia Deviate From Those In Developed Markets?," Romanian Economic Business Review, Romanian-American University, vol. 8(1), pages 130-139, March.
    2. Tanja Markovic-Hribernik & Andrej Kuzner, 2013. "Mutual Fund Management Performance In Transition Countries: Domestic Vs. Foreign Mutual Fund Managers – Research Findings For Slovenia," Romanian Economic Business Review, Romanian-American University, vol. 8(4), pages 84-105, december.

    More about this item

    Keywords

    open-ending of closed-end funds; closed-end funds; discount; event study;
    All these keywords.

    JEL classification:

    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading
    • G23 - Financial Economics - - Financial Institutions and Services - - - Non-bank Financial Institutions; Financial Instruments; Institutional Investors

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fau:fauart:v:54:y:2004:i:1-2:p:22-49. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Natalie Svarcova (email available below). General contact details of provider: https://edirc.repec.org/data/icunicz.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.