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CONCENTRATED OWNERSHIP AND DISCOUNTS ON CLOSED‐END FUNDS

CONCENTRATED OWNERSHIP AND DISCOUNTS ON CLOSED‐END FUNDS Footnotes 1 . See, for example, Greggory A. Brauer , “ Open‐ending Closed‐end Funds ,” Journal of Financial Economics 13 ( 1984 ), 461 – 507 ; and Rex Thompson , “ The Information Content of Discounts and Premiums on Closed‐end Fund Shares ,” Journal of Financial Economics 6 ( 1978 ), 151 – 186 . 2 . Michael J. Barclay and Clifford G. Holderness , “ Private Benefits from Control of Public Corporations ,” Journal of Financial Economics 25 ( 1989 ), 371 – 397 . 3 . Although blocks that are hostile toward management are excluded from the scatter plots, seven of the eight funds with hostile blockholders also trade at a discount. 4 . The return on the stock market index over this period was –27%. 5 . Liberty Management is further compensated for “payment of brokerage fees and commissions, audits, transfer and custodian fees, record‐keeping, legal fees, quotation fees, fidelity bonds,” and many other expenses, including “any extraordinary expense of a nonrecurring nature.” Barron's , March 7, 1988, p. 9. It is interesting that Liberty Management's compensation is based on net asset value, rather than on the market value of the fund itself. This http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Applied Corporate Finance Wiley

CONCENTRATED OWNERSHIP AND DISCOUNTS ON CLOSED‐END FUNDS

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References (6)

Publisher
Wiley
Copyright
Copyright © 1995 Wiley Subscription Services, Inc., A Wiley Company
ISSN
1078-1196
eISSN
1745-6622
DOI
10.1111/j.1745-6622.1995.tb00271.x
Publisher site
See Article on Publisher Site

Abstract

Footnotes 1 . See, for example, Greggory A. Brauer , “ Open‐ending Closed‐end Funds ,” Journal of Financial Economics 13 ( 1984 ), 461 – 507 ; and Rex Thompson , “ The Information Content of Discounts and Premiums on Closed‐end Fund Shares ,” Journal of Financial Economics 6 ( 1978 ), 151 – 186 . 2 . Michael J. Barclay and Clifford G. Holderness , “ Private Benefits from Control of Public Corporations ,” Journal of Financial Economics 25 ( 1989 ), 371 – 397 . 3 . Although blocks that are hostile toward management are excluded from the scatter plots, seven of the eight funds with hostile blockholders also trade at a discount. 4 . The return on the stock market index over this period was –27%. 5 . Liberty Management is further compensated for “payment of brokerage fees and commissions, audits, transfer and custodian fees, record‐keeping, legal fees, quotation fees, fidelity bonds,” and many other expenses, including “any extraordinary expense of a nonrecurring nature.” Barron's , March 7, 1988, p. 9. It is interesting that Liberty Management's compensation is based on net asset value, rather than on the market value of the fund itself. This

Journal

Journal of Applied Corporate FinanceWiley

Published: Mar 1, 1995

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