Using a difference-in-differences approach that relies on the exogenous increase in options
trading activity generated by the Securities and Exchange Commission's Penny Pilot …

Options trading activity can affect firm debt structure decisions by stimulating informed
trading that improves the informational environment in which firms raise debt capital. We find …

We investigate whether options trading activities affect underlying firms' degree of cost
stickiness. Using a panel of US companies, we find that options trading activities reduce the …

We examine the association between enhancement in a firm's information environment via
options trading and firm investment efficiency. Investment inefficiency is partly driven by …

Stocks can be mispriced for at least two reasons: value-relevant information is not timely
incorporated or investor sentiment can induce mispricing. Using the mispricing measure …

We examine the effect of options trading on an optioned firm's investment decisions. We find
that active options trading improves an optioned firm's investment efficiency, and that this …

Utilizing a sample of US firms spanning 1996–2021, our study presents robust evidence
indicating that the stock prices of complex firms demonstrate improved forecasting price …

We theoretically and empirically show that stock return exposure to media narratives'
attention, measured with standard methods for extracting topic attention from news text, is …

Does options trading increase or decrease corporate default risk? We answer this question
by examining how options trading affects the expected default frequency. The results reveal …

This paper studies the value relevance of the options market by focusing on convertible
bond pricing. Pricing convertible bonds requires essentially the same set of information …