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International Investment Restrictions and Closed‐End Country Fund Prices
Author(s) -
BONSER-NEAL CATHERINE,
BRAUER GREGGORY,
NEAL ROBERT,
WHEATLEY SIMON
Publication year - 1990
Publication title -
the journal of finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 18.151
H-Index - 299
eISSN - 1540-6261
pISSN - 0022-1082
DOI - 10.1111/j.1540-6261.1990.tb03701.x
Subject(s) - closed end fund , net asset value , monetary economics , asset (computer security) , investment (military) , business , capital market , economics , financial economics , international economics , finance , computer security , politics , market liquidity , computer science , law , political science
Some closed‐end country funds trade at large premiums relative to their net asset values. This paper examines whether international investment restrictions raise country fund price‐net asset value ratios by segmenting international capital markets. We test whether a relation exists between announcements of changes in investment restrictions and changes in these ratios using weekly data from May 1981 to January 1989. The results provide evidence that some foreign markets are at least partially segmented from the U.S. capital market.