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The Information Content of Put Warrant Issues
2004
Social Science Research Network
Povel) and rajsingh@umn.edu (Singh). We are grateful to Sugato Bhattacharyya, Abstract We analyze why firms may want to issue put warrants, i.e., promises to repurchase their own shares at a given price in the future. We describe four alternative explanations, one of which is novel: that put warrants are issued by firms that wish to signal their good future prospects to their investors (who undervalue the firms in the eyes of their managers). We test the validity of the four alternative
doi:10.2139/ssrn.561021
fatcat:iiulhsehqvhedahuywxadm3paq