Bank affiliation and discounts on closed-end funds

Güner, Zehra Nuray
Önder, Zeynep
© 2022 Elsevier Inc.This study investigates whether investors value the bank affiliation of closed-end funds and analyzes whether investors treat funds differently because of their affiliated bank type, commercial or investment, and the size of their affiliated commercial bank, small or big. The analysis of the discounts on closed-end funds traded on Borsa Istanbul reveals that bank-affiliated funds trade at a lower discount than other funds, controlling for fund characteristics and market conditions. It is found that investors are willing to pay a higher price on funds affiliated with commercial banks, especially big ones, than bank-unaffiliated funds. However, discounts on all bank-affiliated funds increased more than discounts on unaffiliated funds during the banking crisis of 2000–2001 in Turkey suggesting that investors are willing to pay a trust premium to invest in funds that are affiliated with banks regardless of their type or size.
International Review of Financial Analysis


Orhan, Selim; Danışoğlu, Seza; Department of Financial Mathematics (2022-5-10)
Banks are considered as the marginal and sophisticated investors of financial markets. This is evident in the Haddad and Sraer (2020) study that examines the US government bond excess returns. This study extends the Haddad/Sraer analysis to the Turkish government bond market. According to the forecasting results, exposure ratio provides explanatory power over bond excess returns, especially for longer maturities. On the other hand, output gap and industrial growth present strong in-sample forecasting power ...
Financial fragilities of Turkish non-financial sectors
Kılıç, Abdurrahman; Özmen, Erdal; Department of Economics (2015)
This thesis investigates financial structure of Turkish non-financial sectors and the impacts of their financial fragilities on profitability using the Central Bank of the Republic of Turkey (CBRT) sector level company accounts data base. The results suggest that corporate sector leverage dramatically increased after 2009. Despite the improvements in maturity and liability dollarization of the corporate sector, fragilities still appear to be substantially high. Foreign currency denominated assets have becom...
An analysis of the performance of investment companies: evidence from the İstanbul stock exchange
Sultanov, Rustam; Güner, Zehra Nuray; Department of Business Administration (2010)
The purpose of this master’s thesis is to evaluate the performance of investment companies, namely Real Estate Investment Trusts (REITs) and Closed-End Funds (CEFs) in Turkey. In this study, three different models are used to evaluate the risk adjusted performances of Turkish investment companies. These models are: 1) the single-factor CAPM; 2) the Fama-French three-factor model; and 3) the Carhart’s four factor model. The results of this study indicate that for the sample period from January 1997 to Decemb...
Analyzing the profit efficiency of the Turkish banking sector after the BRSA restructuring program in 2001: an empirical study using stochastic frontier approach between the years of 2002-2009
Hatunoğlu, Hande; Akbostancı Özkazanç, Elif; Department of Economics (2012)
This thesis analyzes the profit efficiency of the Turkish banking sector after the restructuring program by using Stochastic Frontier Approach. 28 banks are included in the analysis and the data belongs to the period 2002-2009. Profit efficiency scores of 28 banks are estimated by SFA. When the efficiency scores are analyzed according to the ownership status, profit efficiency scores of the state owned banks are found higher than other bank groups. Moreover, according to the asset size, large scale banks’ p...
Financial CDS, stock market and interest rates: Which drives which?
Hammoudeh, Shawkat; Sarı, Ramazan (2011-12-01)
The objective is to examine the short- and long-run dynamics of US financial CDS index spreads at the sector level and explore their relationships with the stock market and the short- and long-run government securities, paying particular attention to the subperiod that begins with the 2007 Great Recession. We use daily time series for the three US five-year CDS index spreads for banking, financial services and insurance sectors, the S&P 500 index, the short- and long-term Treasury securities rates. Employin...
Citation Formats
Z. N. Güner and Z. Önder, “Bank affiliation and discounts on closed-end funds,” International Review of Financial Analysis, vol. 83, pp. 0–0, 2022, Accessed: 00, 2022. [Online]. Available: