Real options theory in strategic management
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DOI: 10.1002/smj.2593
Abstract: Research summary: This article provides a review of real options theory (ROT) in strategic management research. We review the fundamentals of ROT and provide a taxonomy of this research. By synthesizing and critiquing research on… read more here.
Keywords: options theory; research; real options; theory strategic ... See more keywords
Toward a Behavioral Theory of Real Options: Noisy Signals, Bias, and Learning
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DOI: 10.1002/smj.2757
Abstract: Research Summary: We develop a behavioral theory of real options that relaxes the informational and behavioral assumptions underlying applications of financial options theory to real assets. To do so, we augment real option theory's focus… read more here.
Keywords: uncertainty; behavioral theory; option; real options ... See more keywords
A real options approach for joint overhaul and replacement strategies with mean reverting prices
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DOI: 10.1007/s10479-018-2906-z
Abstract: Due to its significant impact on economic performance, an effective equipment overhaul and replacement strategy is a key aspect of physical asset management in capital-intensive industries, such as the mining industry. Classical approaches suggest periodic… read more here.
Keywords: replacement; options approach; real options; overhaul replacement ... See more keywords
Using real options theory to explain patterns in the valuation of research and development expenditures
Sign Up to like & getrecommendations! Published in 2018 at "Review of Quantitative Finance and Accounting"
DOI: 10.1007/s11156-017-0681-6
Abstract: Real options theory posits that the value of the firm is a combination of the value generated by the assets in place and the value of the option to invest in the future. It is… read more here.
Keywords: value; real options; options theory; valuation ... See more keywords
A comment on: “Real options for endangered species” ()
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DOI: 10.1016/j.ecolecon.2021.107175
Abstract: Abstract Conrad (2018) offers a real option model to analyze conservation policy for endangered species. However, the proposed solution does not characterize the optimal intervention policy. We present the optimal solution and briefly illustrate its… read more here.
Keywords: real options; intervention; policy; comment real ... See more keywords
A real options framework for reducing emissions from deforestation: Reconciling short-term incentives with long-term benefits from conservation and agricultural intensification
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DOI: 10.1016/j.ecoser.2021.101275
Abstract: Abstract Tropical forests provide enormous ecological and economic value. The potential is rapidly growing for carbon markets to deliver private and public compensation for emissions reductions from forest protection at national and subnational scales. Nevertheless,… read more here.
Keywords: term incentives; term; real options; options framework ... See more keywords
Blending under uncertainty: Real options analysis of ethanol plants and biofuels mandates
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DOI: 10.1016/j.eneco.2016.11.007
Abstract: The value of a representative ethanol producer, that benefits from both low and high gasoline prices in the short-run, is modeled. Ethanol producers make a modest competitive profit in the mandate-induced region of production. A… read more here.
Keywords: blending uncertainty; ethanol producers; value; real options ... See more keywords
Real options and strategic bankruptcy
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DOI: 10.1016/j.jbusres.2020.05.057
Abstract: Abstract Understanding whether and when Chapter 11 bankruptcy provides a real option for resolving operational uncertainty is essential for financially-distressed firms seeking to restructure and continue operating as a going concern. The corporate restructuring literature… read more here.
Keywords: real options; bankruptcy; strategic bankruptcy; options strategic ... See more keywords
Time to build and the real-options channel of residential investment
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DOI: 10.1016/j.jfineco.2018.10.019
Abstract: A standard real-options model predicts that time-to-build investment could be delayed by uncertainty over future revenue. We quantify the first-order importance of this mechanism in the 2002–2011 housing boom-bust cycle by developing and estimating a… read more here.
Keywords: real options; build real; time build; investment ... See more keywords
Investments on urban land valuation by real options – The Portuguese case
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DOI: 10.1016/j.landusepol.2021.105484
Abstract: Abstract This study aims to evaluate unexploited urban land in Portugal, for the construction of new apartments, with the real options analysis's contribution, using the Quigg model, adapted to the reality of the Portuguese market.… read more here.
Keywords: urban land; real options; portuguese case; value ... See more keywords
Determination of inventory for mining production with a real options approach and comparison with other classic methods
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DOI: 10.1080/17480930.2016.1156871
Abstract: Abstract Safety stock of mining production is kept to prevent ore supply from stock-out, due to the existence of high uncertainty in mining operations and various unforeseen geological conditions. The downstream of mining normally runs… read more here.
Keywords: real options; mining production; safety stock; mining ... See more keywords