search query: @author Voorheis, F. L. / total: 1
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| Author: | Haeblad, M. M. Voorheis, F. L. |
| Title: | Initial option trading and security risk and return |
| Journal: | Journal of Business Finance and Accounting
1991 : NOV, VOL. 18:6, p.903-913 |
| Index terms: | SECURITIES FINANCIAL RISK SHARE PRICES RATE OF RETURN STOCK OPTIONS TRADE PUBLIC POLICY |
| Language: | eng |
| Abstract: | The impact of option introduction on share price volatility and return is examined over the period 1973-1986. The option introduction event is associated with a subsequent decline in total risk as measured by standard deviation. Betas of underlying stocks remain largely unchanged after initial option trading. Option introduction produces excess returns on underlying stocks on the event day, but mean cumulative excess returns remain unchanged after the initial option trading date. Evidence suggests that option introduction is a stabilizing influence on share price, and continued growth of the option market should be a goal of public policy. |
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