A comparison of the performance of open-and closed-end investment companies

This paper investigates the impact of corporate structure on the return performance and related operational characteristics of open- and closed-end investment companies. A statistical model is used to test for differences in several characteristics of these two different types of funds. The results show that there are differences in the returns of open-and closed-end funds, as well as differences in turnover and expenses of funds with different corporate structures. Moreover, the results are surprising in that they are significantly affected by the type of security held in the funds.