Determining the relationship of stock options to market liquidity of Jollibee Food Corporation through bid-ask spreads and market depth from 2001-2008

Date of Publication

2011

Document Type

Bachelor's Thesis

Degree Name

Bachelor of Science in Commerce Major in Management of Financial Institutions

Subject Categories

Finance and Financial Management

College

Ramon V. Del Rosario College of Business

Department/Unit

Financial Management

Thesis Adviser

Tomas Tiu

Defense Panel Member

Rene Betita
Kashmir Ibanez
Joseph Vincent David

Abstract/Summary

The group aims to test the effects of stock option plans on market liquidity through the bid-ask spreads and the market depth of Jollibee Food Corporation in the period of 2001-2008 with the use of the decomposition mode of Madhaven, Richardson and Roomans (1997). Stock option plans have little effect on effective spreads however, bid-ask spreads and market depth improves significantly. These suggest that employees or officials who exercise their stock options can inject stock in the free float level and alter trading volume and share price. Based on the results, the researchers conclude that stock options do not affect market liquidity through bid-ask spreads and market depth.

Abstract Format

html

Language

English

Format

Print

Accession Number

TU21206

Shelf Location

Archives, The Learning Commons, 12F, Henry Sy Sr. Hall

Physical Description

62 leaves

Keywords

Stock options--Philippines; Jollibee Foods Corporation

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