Document Type
Article
Keywords
investments; liquidity (economics); mutal funds; turnover (business); stockholders
Identifier Data
http://bryant.idm.oclc.org/login?url=http://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=132455777&site=ehost-live
Publisher
North American Business Press
Publication Source
Journal of Accounting and Finance
Abstract
We examine the relationship between the liquidity of the portfolios of closed-end mutual funds and the share turnover of closed-end funds' shares. We find that the portfolio liquidity/share turnover relationship is contingent upon the nature of the funds' shareholders. For funds with mainly smaller shareholders, there is a negative relationship between portfolio liquidity and share turnover, suggesting that smaller investors are more likely to hold shares of these funds to avoid the transaction costs associated with trading. However, as more institutional investors hold fund shares, portfolio liquidity is positively associated with share turnover.
Comments
Please cite original article.