Abstract

This paper is to investigate the impacts of derivative warrants issuance from January,1997 to April, 2001 on both price and trading volumes of underlying stock around theannouncement date in Taiwan stock market. The ndings on price and trading volumesbehaviors suggest that there may be substantial purchases of the underlying stock by theissuers at one day before the announcement date of derivative warrants issuance for meetingthe hedging demand, and there may be substantial purchases of the underlying stock by theissuer/informed-trader for the last 10 minutes prior to market closure on the announcementdate of derivative warrants issuance for meeting price manipulating/information leaking de-mands. Nevertheless, the ndings on price and trading volumes also suggest that theremay convey an unfavorable signal about the reactions to the issuers’ perception of futureperformance of the underlying stock by the public investors during two days after the an-nouncement date of derivative warrants issuance, which underlying stock underperforms thewhole market.

Chung-Chu Chuang

Aletheia University R.O.C.

Shuo-Li Chuang

National Taiwan University R.O.C.

M16N12

ABSTRACT  Are Tall People Less Risk Averse than Others?  This paper examines the question of whether risk aversion of prime-age workers is negatively correlated with human height to a statistically significant degree. A variety of estimation methods, tests and specifications yield robust results that permit one to answer this question in the affirmative. Hausman-Taylor panel estimates, however, reveal that height effects disappear if personality traits and skills, parents’ behaviour, and interactions between environment and individual abilities appear simultaneously. Height is a good proxy for these influences if they are not observable. Not only one factor but a combination of several traits and interaction effects can describe the time-invariant individual effect in a panel model of risk attitude.

JEL Classification: D90, J13, J24

Keywords: height, risk preference

Corresponding author:

Olaf Hübler

Institute of Empirical Economic Research Leibniz University of Hannover

Königsworther Platz 1 D-30167 Hannover Germany

SSRN-id2039567