THE IMPACT OF ISSUING WARRANT ON THE STOCK PRICE
Yasir Maulana (a*), Ikin Solikin (b), Wahyudayanto Utama (c), Ayus Ahmad Yusuf (d)

a) Universitas Kuningan
*yasir[at]uniku.ac.id
b) Universitas Pendidikan Indonesia
c) Universitas Pendidikan Indonesia
d) IAIN Syekh Nurjati Cirebon

Abstract

Using information from company-issued warrants traded on a stock exchange we find that he distribution of the stock price process changes when warrants are issued. The goal of this study is to create a risk-management tool based on the stock price distribution of a corporation that distributes warrants. Risk management is also based on theoretical results. Also discussed are some empirical research on the impact of issuing warrants on the stock price distribution. Theoretical findings are backed up by actual evidence, proving that issuing warrants has an effect on stock price distribution.

Keywords: Warrant, Stock Prices

Topic: Financial