What drives closed‐end fund discounts? Evidence from COVID‐19
研究了美国COVID-19疫情爆发后封闭式基金折价的变化，发现折价扩大与个人投资者情绪下降有关，且零售持股比例高的基金折价增加更多。
Abstract This paper investigates the impact of the onset of the COVID‐19 pandemic in the United States on closed‐end fund (CEF) discounts. I show that CEF discounts increased after the onset of the COVID‐19 pandemic in the United States, while individual investor sentiment declined. Furthermore, CEFs with higher retail ownership had a larger discount increase, which suggests that individual investor sentiment is a potential contributor to CEF discounts. This finding seems less likely to be driven by rational channels or income‐driven fire sales, as shown by further analysis. Overall, the results shed light on the CEF discount puzzle using a new setting.