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Market size and seasonalities: The case of the UK investment trust industry
Author(s) -
Levis Mario
Publication year - 1987
Publication title -
managerial and decision economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.288
H-Index - 51
eISSN - 1099-1468
pISSN - 0143-6570
DOI - 10.1002/mde.4090080204
Subject(s) - investment (military) , market size , economics , monetary economics , variation (astronomy) , ideal (ethics) , commerce , law , physics , politics , political science , astrophysics
The particular characteristics of the UK mutual funds industry provide ideal ground for examining the pertinence of the ‘Small‐size effect’ and the ‘tax‐loss‐selling’ hypothesis. The evidence indicates the presence of a modest‐size premium for smaller investment trusts, but, rather surprisingly, size in general does not appear to be a determining factor of market performance. Moreover, in spite of some variation in the rates of return around the turn of the tax year, the evidence as a whole does not unambiguously support the tax‐loss‐selling hypothesis. However, there is ground to believe that the overall poor performance of the UK investment trust industry could be due to the tax regimen governing the industry's operations during the period 1965–80.