The impact of issuing warrant and debt on behavior of the firm's stock

被引：1
|
作者：
Xiao, Wei-Lin [1 ]
Zhang, Wei-Guo [2 ]
Yao, Zheng [1 ]
Wang, Xiao-Hui [2 ]
机构：
[1] Zhejiang Univ, Sch Management, Hangzhou 310058, Zhejiang, Peoples R China
[2] S China Univ Technol, Sch Business & Adm, Guangzhou 510640, Guangdong, Peoples R China
来源：
ECONOMIC MODELLING | 2013年 / 31卷
基金：
中国国家自然科学基金;
关键词：
Equity warrants; Zero-coupon debt; Distribution; Debt issued with warrant; Stock price processes; EQUITY WARRANTS; VALUATION; OPTIONS; PRICE; MODEL;
D O I：
10.1016/j.econmod.2013.01.007
中图分类号：
F [经济];
学科分类号：
02 ;
摘要：
Unlike options, warrant issuance changes the distribution of the stock price process. Indeed, firms issuing warrants are also debt financed. In this situation, it is natural to consider the distribution of the stock price process for a firm, which is debt-warrant combination. This paper is devoted to provide a risk-management tool, namely the stock price distribution of a firm issuing both debt and warrants. We also apply the theoretical results to the risk-management. Moreover, some empirical studies are given to illustrate the impact of issuing warrants and debt on the stock price distribution. The empirical evidence confirms the theoretical findings and shows that issuing warrants and debt has effects on the distribution of stock price processes. (C) 2013 Elsevier B.V. All rights reserved.
引用
收藏
页码：635 / 641
页数：7
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