Do closed-end fund investors herd?

Cui, Yueting, Gebka, Bartosz and Kallinterakis, V ORCID: 0000-0001-6217-1188 (2019) Do closed-end fund investors herd? Journal of Banking and Finance, 105. pp. 194-206.

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Abstract

We provide the first investigation of herding among closed-end fund investors, drawing on the US closed-end fund market for the 1992–2016 period. Results suggest closed-end fund investors herd significantly, with their herding being mainly driven by non-fundamentals. Closed-end fund herding rises in economic/market uncertainty, with its significance being mainly concentrated in the post-2007 period. Herding among closed-end funds is strongly motivated by discounts, is more pronounced than that among their net asset values and tends to grow inversely with fund-size. The fact that closed-end fund herding is noise-driven and linked to their discounts raises the possibility that it is related to the noise trader risk attributed to closed-end funds by investor sentiment theory.

Item Type:	Article
Uncontrolled Keywords:	Closed-end funds, Herding, Discounts, Sentiment
Depositing User:	Symplectic Admin
Date Deposited:	05 Jun 2019 08:41
Last Modified:	19 Jan 2023 00:42
DOI:	10.1016/j.jbankfin.2019.05.015
Related URLs:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3042987