Option listing and information asymmetry
Between 2001 and 2010, US stocks selected for option listing are estimated to experience increases of 16.8% in informed trading and 27.8% in uninformed trading, no significant change in the probability of information events, and a decrease of 11.5% in the probability of informed trading compared to...
Saved in:
| Main Author: | |
|---|---|
| Format: | text |
| Language: | English |
| Published: |
Institutional Knowledge at Singapore Management University
2014
|
| Subjects: | |
| Online Access: | https://ink.library.smu.edu.sg/lkcsb_research/4542 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Institution: | Singapore Management University |
| Language: | English |
| id |
sg-smu-ink.lkcsb_research-5541 |
|---|---|
| record_format |
dspace |
| spelling |
sg-smu-ink.lkcsb_research-55412015-03-26T03:36:06Z Option listing and information asymmetry HU, Jianfeng Between 2001 and 2010, US stocks selected for option listing are estimated to experience increases of 16.8% in informed trading and 27.8% in uninformed trading, no significant change in the probability of information events, and a decrease of 11.5% in the probability of informed trading compared to unselected stocks with similar propensities of listing. Dynamic analysis shows the effects mainly come from the first month after listing. A placebo test shows that options on Exchange-Traded-Funds increase only uninformed trading. Options also facilitate incorporation of private information. The results suggest that options improve the overall market information environment. 2014-01-01T08:00:00Z text https://ink.library.smu.edu.sg/lkcsb_research/4542 Research Collection Lee Kong Chian School Of Business eng Institutional Knowledge at Singapore Management University Business |
| institution |
Singapore Management University |
| building |
SMU Libraries |
| continent |
Asia |
| country |
Singapore Singapore |
| content_provider |
SMU Libraries |
| collection |
InK@SMU |
| language |
English |
| topic |
Business |
| spellingShingle |
Business HU, Jianfeng Option listing and information asymmetry |
| description |
Between 2001 and 2010, US stocks selected for option listing are estimated to experience increases of 16.8% in informed trading and 27.8% in uninformed trading, no significant change in the probability of information events, and a decrease of 11.5% in the probability of informed trading compared to unselected stocks with similar propensities of listing. Dynamic analysis shows the effects mainly come from the first month after listing. A placebo test shows that options on Exchange-Traded-Funds increase only uninformed trading. Options also facilitate incorporation of private information. The results suggest that options improve the overall market information environment. |
| format |
text |
| author |
HU, Jianfeng |
| author_facet |
HU, Jianfeng |
| author_sort |
HU, Jianfeng |
| title |
Option listing and information asymmetry |
| title_short |
Option listing and information asymmetry |
| title_full |
Option listing and information asymmetry |
| title_fullStr |
Option listing and information asymmetry |
| title_full_unstemmed |
Option listing and information asymmetry |
| title_sort |
option listing and information asymmetry |
| publisher |
Institutional Knowledge at Singapore Management University |
| publishDate |
2014 |
| url |
https://ink.library.smu.edu.sg/lkcsb_research/4542 |
| _version_ |
1770572283525464064 |