亞洲大學財務金融系;Department of Finance, Asia University;國立台中科技大學流通管理系;Department of Distribution Management, National Taichung University of Science and Technology;亞洲大學財務金融所;Department of Finance, Asia University
This study investigates whether a link exists between warrants trading activity and growth opportunities of underlying firms. That is, we examine whether the characteristics of higher leverage and improved efficiency in derivative markets can attract the involvement of informed traders, and explore the future growth opportunities of underlying firms. Using domestic stock warrant data from 1997-2009, our findings show that the trading value of warrants has a significantly positive relationship with underlying firms’ Tobin’s Q. The results are confirmed, after accounting for endogeneity, alternative measures of trading activities, and industry effects.