The impact of call warrant listing on underlying stock returns: The Malaysian evidence
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...
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| Format: | Conference or Workshop Item |
| Language: | English |
| Published: |
2007
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| Subjects: | |
| Online Access: | https://repo.uum.edu.my/id/eprint/2580/1/Yip_Yen_Yen.pdf |
| Summary: | 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. |
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