X-Message-Number: 9786 Date: Wed, 27 May 1998 05:10:58 -0700 (PDT) From: Doug Skrecky <> Subject: block ownership & closed-end funds Journal of Financial Economics 33: 263-291 1993 "Private Benefits From Block Ownership and Discounts on Closed-end Funds" Abstract: The greater the managerial stock ownership in closed-end funds, the larger are the discounts to net asset value. The average discount for funds with blockholders is 14%, whereas the average discount for funds without blockholders is only 4%. This relation is robust over time and to various model specifications that control for other factors that affect discounts. We argue that blockholders recive private benefits that do not accrue to other shareholders and that they veto open-ending proposals to preserve these benefits. We support this argument by documenting a range of potential private benefits recieved by blockholders in closed-end funds. Rate This Message: http://www.cryonet.org/cgi-bin/rate.cgi?msg=9786