Sanning, Lee W.; Skiba, Alexandre; Skiba, Hilla - In: International Review of Financial Analysis 29 (2013) C, pp. 44-50
The purpose of this paper is to study the closed-end fund discount in Miller's (1977) framework. Miller's theory states that in the simultaneous presence of (1) short sale restrictions and (2) dispersion of investors' opinions, securities become overvalued. We show that discounts of...