Are There Listing Effects of Single Stock Futures in the Derivatives Market on Firms’ Accounting Behavior? Evidence from Korea

This paper analyzes the accounting behavior of firms whose single stock futures are listed in the Korea Exchange (KRX) derivatives market. We find that firms have higher financial reporting quality and more disclosures after single stocks are listed in the future market. Our findings provide contributions to the studies on financial reporting quality and impact of future listing. Also, the Korean derivatives market has a unique investor characteristic: the active participation of domestic individual investors. Our finding will be helpful to countries whose individual investors' participation rate in the derivatives market has increased