Price Risk and Governance in Chinas Warrants Market
The global financial crisis caused by the U.S. submortgage crisis once again tells us that financial derivatives are a kind of double-edged swords. In this paper, empirical analysis indicates that in Chinas warrants market the market prices of majority of warrants are significantly deviated from their theoretical prices, and there exists a serious departure from theoretical characteristics in the dynamic rel②ationship between warrants prices and the subject securities. Obviously, there exist great speculative activities in Chinas warrants market, with the result of huge price bubbles and investment risks. The article maintains that the great risk in warrants market can mainly be attributed to the nonequality game among rational individual investors, irrational individual investors, warrant creators and warrant distributors. Therefore, from the perspective of risk governance, it is essential for investors to be aware of the risks of warrant investment and for government to reform the issuing and trading system independently.
Warrants Subject Securities deviation risk governance
XU Xuchu JIANG Shaohua SHI Huaiping
School of Finance, Anhui University of Finance of Economics, China, 233041
国际会议
The 5th International Sympsium for Corporate Governance(第五届公司治理国际研讨会)
天津
英文
324-330
2009-09-01（万方平台首次上网日期，不代表论文的发表时间）