Completely predictable and fully anticipated? Step ups in warrant exercise prices

Luis Garcia-Feijóo, John S. Howe, Tie Su

Research output: Contribution to journalArticle

Abstract

Some warrants are issued with a scheduled increase in their exercise price. This increase, referred to as a 'step up' in exercise price, occurs after the warrant is issued but prior to its expiration. The price behaviour of warrants and common stock at the scheduled step up date is examined. The evidence suggests that the market correctly anticipates this event, and that warrant holders exercise (actually, refrain from exercising) rationally.

Original languageEnglish (US)
Pages (from-to)561-565
Number of pages5
JournalApplied Economics Letters
Volume12
Issue number9
DOIs
StatePublished - Jul 15 2005

Fingerprint

Exercise
Warrants

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

Completely predictable and fully anticipated? Step ups in warrant exercise prices. / Garcia-Feijóo, Luis; Howe, John S.; Su, Tie.

In: Applied Economics Letters, Vol. 12, No. 9, 15.07.2005, p. 561-565.

Research output: Contribution to journalArticle

Garcia-Feijóo, Luis ; Howe, John S. ; Su, Tie. / Completely predictable and fully anticipated? Step ups in warrant exercise prices. In: Applied Economics Letters. 2005 ; Vol. 12, No. 9. pp. 561-565.
@article{c3044e1d5e7c480d9605a2f1cc35137c,
title = "Completely predictable and fully anticipated? Step ups in warrant exercise prices",
abstract = "Some warrants are issued with a scheduled increase in their exercise price. This increase, referred to as a 'step up' in exercise price, occurs after the warrant is issued but prior to its expiration. The price behaviour of warrants and common stock at the scheduled step up date is examined. The evidence suggests that the market correctly anticipates this event, and that warrant holders exercise (actually, refrain from exercising) rationally.",
author = "Luis Garcia-Feij{\'o}o and Howe, {John S.} and Tie Su",
year = "2005",
month = "7",
day = "15",
doi = "10.1080/13504850500120664",
language = "English (US)",
volume = "12",
pages = "561--565",
journal = "Applied Economics Letters",
issn = "1350-4851",
publisher = "Routledge",
number = "9",

}

TY - JOUR

T1 - Completely predictable and fully anticipated? Step ups in warrant exercise prices

AU - Garcia-Feijóo, Luis

AU - Howe, John S.

AU - Su, Tie

PY - 2005/7/15

Y1 - 2005/7/15

N2 - Some warrants are issued with a scheduled increase in their exercise price. This increase, referred to as a 'step up' in exercise price, occurs after the warrant is issued but prior to its expiration. The price behaviour of warrants and common stock at the scheduled step up date is examined. The evidence suggests that the market correctly anticipates this event, and that warrant holders exercise (actually, refrain from exercising) rationally.

AB - Some warrants are issued with a scheduled increase in their exercise price. This increase, referred to as a 'step up' in exercise price, occurs after the warrant is issued but prior to its expiration. The price behaviour of warrants and common stock at the scheduled step up date is examined. The evidence suggests that the market correctly anticipates this event, and that warrant holders exercise (actually, refrain from exercising) rationally.

UR - http://www.scopus.com/inward/record.url?scp=23144439260&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=23144439260&partnerID=8YFLogxK

U2 - 10.1080/13504850500120664

DO - 10.1080/13504850500120664

M3 - Article

AN - SCOPUS:23144439260

VL - 12

SP - 561

EP - 565

JO - Applied Economics Letters

JF - Applied Economics Letters

SN - 1350-4851

IS - 9

ER -