Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/257608 
Authors: 
Year of Publication: 
2019
Citation: 
[Journal:] International Journal of Financial Studies [ISSN:] 2227-7072 [Volume:] 7 [Issue:] 1 [Article No.:] 10 [Publisher:] MDPI [Place:] Basel [Year:] 2019 [Pages:] 1-10
Publisher: 
MDPI, Basel
Abstract: 
This article visits the question of whether canceled warrants (CWs) have a positive effect on LME metal prices. To examine this question carefully, a regression model is applied. This paper finds a statistically significant positive link between CWs and LME metal prices, including aluminum, zinc, tin, and nickel. However, other metals such as copper and lead are not statistically significant. The second objective of the study is to identify the dynamic response of metal price returns for aluminum, zinc, tin, and nickel to an innovation in the CWs using VAR. It is found that the positive impact of the CWs on metal returns is transitory.
Subjects: 
LME spot price
canceled warrants
speculation
financialization
JEL: 
C3
G1
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by Logo
Document Type: 
Article

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