The Effect of Option Trading - Couverture souple

Li, Keming

 
9789999311403: The Effect of Option Trading
Couverture souple
ISBN 10 : 9999311407 ISBN 13 : 9789999311403
Editeur : Eliva Press, 2023

Synopsis

This paper studies the effect of option trading on corporate investment and financing policies. Based on prior literature, I hypothesize that option market induces informed trading and thus reduces information asymmetry and the cost of capital. As a result, firms with high option trading have more investment and financing. Specifically, based on the United States public data, this paper finds that option trading volume increases corporate investment and financing, but reduces cash holdings and corporate payouts. These results are robust to the inclusion of industry or firm fixed effect, a control for endogenous options trading, and the use of alternative measures of option trading and corporate policies. The effect of option trading is stronger for firms with higher information asymmetry problems. Finally, this paper finds the results are inconsistent with the “quiet Life” hypothesis and the catering hypothesis.

Les informations fournies dans la section « Synopsis » peuvent faire référence à une autre édition de ce titre.

Éditeur
Eliva Press
Date d'édition
2023
Langue
anglais
ISBN 10 
9999311407
ISBN 13 
9789999311403
Reliure
Broché
Nombre de pages
55
Coordonnées du fabricant
Manufactured by Amazon on behalf of the author
https://www.amazon.fr/hz/contact-us

c/o Amazon Media EU S.à.r.l., 38 Avenue John F. Kennedy
Luxembourg
L-1855
Luxembourg