OPTION TRADING DRIVERS

However, in recent years financial markets have witnessed extraordinary growth in shareholder activism. Well developed and efficient capital markets not only improve the efficiency of long-term resource allocation but also improve firm’s governance practices through their monitoring and disciplining mechanisms. Institutional holding, option trading, and ESOP are the major determinants.įirm leverage adversely affects R & D input and R & D output alike.ĭividend paying, large firms having higher institutional holdings are likely toĪttract stock option listing, while firms with high firm specific return variationsĪre likely to have very low probability of option listing. As far as firm’s research output is concerned, firm leverage, Payout, and profitability affect internal R & D allocations for the sampleįirms. The study also examines the determinants of the option listing on individual Is taken as independent variable along with other firm level control variables. Of innovation are used as dependent variables, while dummy for option trading

OPTION TRADING DRIVERS

Regression analysis is conducted to identify drivers of innovations. Innovation is defined in terms of input and output as R & DĮxpense to sales, and number of patents filed by firm, respectively. Present study examines the effect of option listingĪnd subsequent trading on the innovation in the context of publicly listed

Option trading