An Empirical Study Of The Closed-end Fund Discount - Based On The Analysis Of The Investor Sentiment Theory

As a common phenomenon, the existence of discount of closed-end fund can be found not only in the well-developed capital market of those western countries, but also in China. It is regarded as an enigma in the realm of finance with explorative discussions aroused from different aspects by scholars both at home and abroad. Based on former and current research and theoretical analysis about the discount of closed-end fund, this paper, from the perspective of behavioral finance, aims to study the discount of our country's closed-end fund through theoretical, experiential as well as demonstration analysis by using the fund listed before 1999 as the sample. The outcome of research reveals that investors' sentiment theory can partially explain the phenomenon of discount of fund in our country.