Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5100298 | Journal of Empirical Finance | 2017 | 23 Pages |
Abstract
We examine unexplored factors that affect the ex-post adoption rates of newly listed stock options. We show that a variety of measures of information asymmetries concerning underlying stocks predict option adoption rates. These predictive relationships are robust after including factors that have been found to be significant in earlier literature, such as stock volatility and volume. Moreover, we report that not only do information asymmetries prior to option listings forecast a successful listing, but also that successful listings themselves end up reducing ex-post the extent of the information asymmetries affecting a stock.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Alejandro Bernales,