UK Investment Trust Valuation and Investor Behavior, 1880-1929

• 成果类型: Article
• 署名作者: Open University - UK; Open University - UK
• 刊物名称: JOURNAL OF ECONOMIC HISTORY
• ISSN/ISSBN: 0022-0507
• DOI: 10.1017/S0022050722000365
• 发表日期: 2022
• 页码: 1031-1069
• 关键词: closed-end funds; stock-market; corporate governance; individual investors; discounts; Sentiment; London; BIAS

摘要

This study looks at the valuation of U.K. investment trusts for the 50 years following their appearance as companies in the 1880s. Based on a large and unique dataset compiled from primary sources, our calculations reveal a huge variation between the ordinary share prices of investment trusts and their underlying net asset fundamental values. This mismatch is a well-known puzzle in modern financial markets and has attracted a large volume of research because it casts doubt on the concept of market efficiency. We investigate possible explanations for this pricing puzzle and shed light on U.K. investor behavior before the 1930s.