Pirgaip, Burak2024-03-062024-03-062016Pirgaip, Burak. (2016). "Do Derivative Instruments Play a Role in Performance Theory? The Turkish Closed-End Funds Case", Applied Economics and Finance, vol.3, No.2, pp.136-145.2332-7294http://hdl.handle.net/20.500.12416/7516Market prices of closed-end funds (CEF) deviate from their net asset values (NAV) which is known as “CEF puzzle”. I attempt to show from the Turkish experience that CEF discounts/premia predict the corresponding CEF‟s future returns, in the light of managerial performance theory. But derivatives facet of the subject matter has not been uncovered so far. Therefore I hypothesize that performance of derivative user CEF are better estimators for discounts/premia than non-users. I show a significant positive relation between CEF discounts/premia and future NAV performance. However, this relation seems not to be more explicit for derivative user CEF than non-userseninfo:eu-repo/semantics/openAccessClosed-End FundsDiscountManagerial PerformanceDerivativesArticle3213614510.11114/aef.v3i2.1349