Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market

The objective of this paper is to analyze the “gharar” issue of warrant by presenting the empirical evidence of warrant mispricing in Malaysia's market (moneyness and mispricing) and its determinant. The Black Scholes Option Pricing Model (BSOPM) will be used to detect mispricing in a warrant&#...

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Main Authors:	Qizam, Ibnu, Ardiansyah, Misnen, Haron, Razali
Format:	Article
Language:	English
Published:	Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga Yogyakarta 2013
Subjects:	HG4001 Financial management. Business finance. Corporation finance.
Online Access:	http://irep.iium.edu.my/32297/ http://irep.iium.edu.my/32297/ http://irep.iium.edu.my/32297/1/GRIEB11050068.pdf

id	iium-32297
recordtype	eprints
spelling	iium-322972013-10-17T02:18:40Z http://irep.iium.edu.my/32297/ Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market Qizam, Ibnu Ardiansyah, Misnen Haron, Razali HG4001 Financial management. Business finance. Corporation finance. The objective of this paper is to analyze the “gharar” issue of warrant by presenting the empirical evidence of warrant mispricing in Malaysia's market (moneyness and mispricing) and its determinant. The Black Scholes Option Pricing Model (BSOPM) will be used to detect mispricing in a warrant's contract. In addition panel regression will be performed to analyze the determinant if said warrant is mispriced. The result shows that in majority, mispricing happens in warrant, either by Out the Money, or In the Money. Panel regression analysis finds that Stock price, klibor, and maturity are positive and are significant variables to the mispricing of a warrant. Finally, with the use of a warrant mispricing model, this research concludes that there is gharar issue in warrant contract. Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga Yogyakarta 2013-10-01 Article PeerReviewed application/pdf en http://irep.iium.edu.my/32297/1/GRIEB11050068.pdf Qizam, Ibnu and Ardiansyah, Misnen and Haron, Razali (2013) Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market. Global Review of Islamic Economics and Business, 1 (1). pp. 50-68. ISSN 2338-2619 http://issn.pdii.lipi.go.id/issn.cgi?daftar&1367908545&811&&
repository_type	Digital Repository
institution_category	Local University
institution	International Islamic University Malaysia
building	IIUM Repository
collection	Online Access
language	English
topic	HG4001 Financial management. Business finance. Corporation finance.
spellingShingle	HG4001 Financial management. Business finance. Corporation finance. Qizam, Ibnu Ardiansyah, Misnen Haron, Razali Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market
description	The objective of this paper is to analyze the “gharar” issue of warrant by presenting the empirical evidence of warrant mispricing in Malaysia's market (moneyness and mispricing) and its determinant. The Black Scholes Option Pricing Model (BSOPM) will be used to detect mispricing in a warrant's contract. In addition panel regression will be performed to analyze the determinant if said warrant is mispriced. The result shows that in majority, mispricing happens in warrant, either by Out the Money, or In the Money. Panel regression analysis finds that Stock price, klibor, and maturity are positive and are significant variables to the mispricing of a warrant. Finally, with the use of a warrant mispricing model, this research concludes that there is gharar issue in warrant contract.
format	Article
author	Qizam, Ibnu Ardiansyah, Misnen Haron, Razali
author_facet	Qizam, Ibnu Ardiansyah, Misnen Haron, Razali
author_sort	Qizam, Ibnu
title	Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market
title_short	Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market
title_full	Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market
title_fullStr	Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market
title_full_unstemmed	Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market
title_sort	shariah issue of warrant contract: empirical evidence from warrant mispricing in malaysia market
publisher	Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga Yogyakarta
publishDate	2013
url	http://irep.iium.edu.my/32297/ http://irep.iium.edu.my/32297/ http://irep.iium.edu.my/32297/1/GRIEB11050068.pdf
first_indexed	2023-09-18T20:46:37Z
last_indexed	2023-09-18T20:46:37Z
_version_	1777409718095970304

Shariah issue of warrant contract: empirical evidence from warrant mispricing in Malaysia market

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