We investigate the roles of liquidity providers (LPs) and algorithmic traders (ATs) using a complete derivative warrant trading record of all investors in Korea. The main empirical findings indicate that LPs, the sole traders responsible for making market, do not trade primarily for liquidity...

We explore the forces that drive cash savings in equity issuance using the average cash-savings rate instead of the marginal cash-savings rate that overstates individual issuers’ cash savings. Equity issuers with high investment opportunities save more cash in anticipation of greater cash...