Why do closed-end funds repurchase stock?

Why do closed-end funds repurchase stock?

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With special institutional characteristics and regulatory requirements, Vegan Supplements what factors can motivate UK closed-end funds to engage in open-market repurchases? Investigating repurchase transactions on financial-year basis, I find that funds repurchase shares to reduce discounts and to increase the net asset value per share, as directors claim, but not to increase fund liquidity.I also find that funds repurchase shares to increase leverage ratios.Unlike conventional firms, neither distributing Washer Cleaner excess cash nor substituting dividend payouts promote fund repurchases.Fund size has a negative effect on repurchase decision.