The purpose of this study is to investigate whether a company's media attention (measured by news coverage) is one of the factors that securities companies decide to issue its warrant and is one explanatory variable for the number of issued warrants. The research sample consists of all issuable stocks and warrants from 2011 to 2015. The data are obtained from Taiwan Stock Exchange, Market Observation Post System, equity and financial derivatives database in Taiwan Economic Journal (TEJ). Using Logistic Regression Analysis, we study how news coverage of a company affects the probability of a securities company in issuing its warrants. In addition, we also apply Ordinary Least Square Regression to investigate how news coverage of a company decides the number of warrants securities companies issue with it as the underlying. Our empirical findings show that whatever types of warrants, such as American or European warrants, call or put warrants, ordinary type or reset type warrants, higher news coverage of a company, securities companies are more likely to issue its warrants and issue more warrants. Additionally, warrant issuance probabilities are higher for underlying stocks with high stock returns, high shareholding proportions of directors and supervisors, low book to market ratio and low stock weekly turnover rates.
