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The impact of call warrant listing on underlying stock returns: The Malaysian evidence


Yip, Yen Yen (2007) The impact of call warrant listing on underlying stock returns: The Malaysian evidence. In: International Economic Conference on Trade and Industry (IECTI) 2007, 3 - 5 December 2007, Bayview Hotel Georgetown, Penang. (Unpublished)

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Abstract

This study analysis the impact of call warrant listing on its underlying stock’s returns by employing the event study methodology. The sample of study consists of 41 warranted stocks listed on Bursa Malaysia from March 2003 to March 2007. Overall; the results suggest that call warrant listing has no significant impact on its underlying stock’s returns. The outcome of this study is contradicting with those studies based on Western market, in which option listing will tend to improve the performance of the underlying market by producing positive abnormal returns. Such phenomenon infers that whilst call warrant provides an alternative to stock option, it does not expand the opportunity set of investors to the extent that stock option does. Finally, the relatively small free float in Malaysian market could be one of the contributing factors.

Item Type: Conference or Workshop Item (Paper)
Additional Information: Organized by Faculty of Economics, Universiti Utara Malaysia
Uncontrolled Keywords: Bursa Malaysia, Derivatives, Call warrants
Subjects: H Social Sciences > HG Finance
Divisions: College of Arts and Sciences
Depositing User: Mrs. Juwita Johari
Date Deposited: 27 Feb 2011 02:22
Last Modified: 27 Feb 2011 02:22
URI: http://repo.uum.edu.my/id/eprint/2580

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