Why do closed-end funds repurchase stock?
South African Journal of Business Management
| Field | Value | |
| Title | Why do closed-end funds repurchase stock? | |
| Creator | Yang, Tianna | |
| Description | With special institutional characteristics and regulatory requirements, what factors can motivate UK closed-end funds to engage in open-market repurchases? Investigating repurchase transactions on financial-year basis, I find that funds repurchase shares to reduce discounts and to increase the net asset value per share, as directors claim, but not to increase fund liquidity. I also find that funds repurchase shares to increase leverage ratios. Unlike conventional firms, neither distributing excess cash nor substituting dividend payouts promote fund repurchases. Fund size has a negative effect on repurchase decision. | |
| Publisher | AOSIS | |
| Date | 2018-03-29 | |
| Identifier | 10.4102/sajbm.v49i1.14 | |
| Source | South African Journal of Business Management; Vol 49, No 1 (2018); 9 pages 2078-5976 2078-5585 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://sajbm.org/index.php/sajbm/article/view/14/106
https://sajbm.org/index.php/sajbm/article/view/14/105
https://sajbm.org/index.php/sajbm/article/view/14/107
https://sajbm.org/index.php/sajbm/article/view/14/104
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