IDEAS home Printed from https://ideas.repec.org/a/nye/nyervw/v34y2003i1p51-62.html
   My bibliography  Save this article

The Influence Of Illiquid Assets On Prices

Author

Listed:
  • Michael N. Baur
  • Omar Benkato
  • Socorro M. Quintero

Abstract

There are fundamental differences between assets held by closed and open-end funds. Past research indicates that closed-end funds are less liquid than open-end funds. For example, a larger percentage of closed-end funds hold less liquid international securities. This paper surveys the existing evidence of the impact of illiquid assets on the prices of open and closed-end funds. Specifically, it surveys existing literature on whether the price discount typically observed on closed-end funds is the expected result given the inescapable costs associated with managing relatively illiquid assets in closed-end funds. This paper synthesizes the various observations into one coherent theme: illiquid assets appear to be a significant source of the differences in the behavior we observe between open and closed-end funds. For a broader audience, this sheds light on valuation issues related to illiquid assets by looking at the case study of closed-end funds.

Suggested Citation

  • Michael N. Baur & Omar Benkato & Socorro M. Quintero, 2003. "The Influence Of Illiquid Assets On Prices," New York Economic Review, New York State Economics Association (NYSEA), vol. 34(1), pages 51-62.
    • Handle: RePEc:nye:nyervw:v:34:y:2003:i:1:p:51-62
    as

    Download full text from publisher

    File URL: http://www.nyecon.net/nysea/publications/nyer/2003/NYER_2003_p051.pdf
    Download Restriction: no
    File URL: http://www.nyecon.net/nysea/publications/nyer/2003/NYER_2003_p051.html
    Download Restriction: no
    ---><---

    More about this item

    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:nye:nyervw:v:34:y:2003:i:1:p:51-62. 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: Eryk Wdowiak (email available below). General contact details of provider: https://edirc.repec.org/data/nyseaea.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.