The Empirical Study On Micro-Market Function Of The Call Warrants

Along with the exition of warrants adopted in Chinese stock marke warrants, the equity warrant bonds aroused more ande moren attention, whose healthy develoption plays an important role in warrants market. Call-Warrants is an important part of equity warrants bonds, whose market function have an important sigificantion to the whole market.. The paper adopt the test method of Econometrics and Sequential Financing Hypothesis, analyse the micro market functions of Markate Function. The function includes price discovery and financing. The empirical results of the study show, which have long-term equilibrium relationship between call-wanrrant prices and underly-stock , this is to say, The call-warrants have price discovery function. As the same time, the maket functionof call-warrants depends on the expection of company development and managers'behavioral. In the end, basis on the conclusion, several econometrics methods are used to improve the market of Call-Warrants.