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&#...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga Yogyakarta
2013
|
| Subjects: | |
| Online Access: | http://irep.iium.edu.my/32297/ http://irep.iium.edu.my/32297/1/GRIEB11050068.pdf |
| _version_ | 1848780536894455808 |
|---|---|
| author | Qizam, Ibnu Ardiansyah, Misnen Haron, Razali |
| author_facet | Qizam, Ibnu Ardiansyah, Misnen Haron, Razali |
| author_sort | Qizam, Ibnu |
| building | IIUM Repository |
| collection | Online Access |
| 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. |
| first_indexed | 2025-11-14T15:35:14Z |
| format | Article |
| id | iium-32297 |
| institution | International Islamic University Malaysia |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-14T15:35:14Z |
| publishDate | 2013 |
| publisher | Faculty of Islamic Economics and Business, State Islamic University Sunan Kalijaga Yogyakarta |
| recordtype | eprints |
| repository_type | Digital Repository |
| 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&& |
| 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 |
| title | 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_short | 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 |
| topic | HG4001 Financial management. Business finance. Corporation finance. |
| url | http://irep.iium.edu.my/32297/ http://irep.iium.edu.my/32297/ http://irep.iium.edu.my/32297/1/GRIEB11050068.pdf |