Nowa Nowadays, covered warrants (CWs) have emerged as a popular financialinstrument in the Vietnamese stock market, offering investors promisingopportunities for profitable returns. However, these instruments also carryinherent risks, necessitating a thorough understanding of their characteristics. This research aims to evaluate the impact of CW issuance on theprice and liquidity (measured by trading volume and bid-ask spread) ofunderlying stocks on the Vietnamese stock market. The study employs theevent study methodology and Wilcoxon test to examine whether abnormalreturns, trading volume, and bid-ask spreads change after CW issuance. Theresearch uses secondary data of 113 active CWs, based on 20 underlyingstocks listed on HNX and HOSE and are issued from April 2023 to January 2024. The findings reveal no significant change in abnormal returns
however, trading volume and bid-ask spreads exhibit noticeable alterationsfollowing CW issuance. These results provide valuable insights for investorsto consider relevant factors when making informed investment decisions. ays, covered warrants (CWs) have emerged as a popular financialinstrument in the Vietnamese stock market, offering investors promisingopportunities for profitable returns. However, these instruments also carryinherent risks, necessitating a thorough understanding of their characteristics. This research aims to evaluate the impact of CW issuance on theprice and liquidity (measured by trading volume and bid-ask spread) ofunderlying stocks on the Vietnamese stock market. The study employs theevent study methodology and Wilcoxon test to examine whether abnormalreturns, trading volume, and bid-ask spreads change after CW issuance. Theresearch uses secondary data of 113 active CWs, based on 20 underlyingstocks listed on HNX and HOSE and are issued from April 2023 to January 2024. The findings reveal no significant change in abnormal returns
however, trading volume and bid-ask spreads exhibit noticeable alterationsfollowing CW issuance. These results provide valuable insights for investorsto consider relevant factors when making informed investment decisions.Nowadays, covered warrants (CWs) have emerged as a popular financialinstrument in the Vietnamese stock market, offering investors promisingopportunities for profitable returns. However, these instruments also carryinherent risks, necessitating a thorough understanding of their characteristics. This research aims to evaluate the impact of CW issuance on theprice and liquidity (measured by trading volume and bid-ask spread) ofunderlying stocks on the Vietnamese stock market. The study employs theevent study methodology and Wilcoxon test to examine whether abnormalreturns, trading volume, and bid-ask spreads change after CW issuance. Theresearch uses secondary data of 113 active CWs, based on 20 underlyingstocks listed on HNX and HOSE and are issued from April 2023 to January 2024. The findings reveal no significant change in abnormal returns
however, trading volume and bid-ask spreads exhibit noticeable alterationsfollowing CW issuance. These results provide valuable insights for investorsto consider relevant factors when making informed investment decisions.