This paper investigates the impact of adopting a minimum dividend policy (MDP) or a share repurchase program (SRP) on closed-end fund discounts and the difference of the two payout policies. Using the data from the U.S. equity funds, we find that funds adopting an MDP significantly reduce their...

A seller with some degree of market power in its product market can earn rents. In this context, there is a gain to granting credit to purchase of the product and thus to the establishment of a captive finance company. This paper examines the optimal behavior of such a durable good seller and...

We test whether foreign investors price foreign exchange risk differently from local investors. Drawing from the closed-end country fund literature, we argue that both differential access to information by foreign versus local investors and different sources of exchange risk that investors face...

We examine the effect of the introduction of index futures trading in the Korean markets on spot price volatility and market efficiency of the underlying KOSPI 200 stocks, relative to the carefully matched non‐KOSPI 200 stocks. Employing both an event study approach and a matching‐sample...

Unlike the U.S. and Japanese securities markets, we find new evidence of volatility spillover between index stocks and non‐index stocks following the introductions of index derivatives trading in the Korean securities markets. We further find that the degree of volatility spillover is closely...

Purpose -The purpose of this paper is to empirically examine the relation between financial leverage and investment opportunities of Chinese industrial firms, which operate in a vastly different financial environment than USA and Japanese firms. Design/methodology/approach -Multivariate...