Search Results - subject:"abandonment option"

A comment on the relationship between operating leverage and financial leverage

Glover, Kristoffer - In: Finance research letters 67 (2024) 1, pp. 1-7

Persistent link: https://www.econbiz.de/10015061504

Value of investors' escalation of commitment in PPP projects using real option thinking

Gao, Ruolan; Liu, Jicai - In: International journal of strategic property management 24 (2020) 5, pp. 348-364

Persistent link: https://www.econbiz.de/10013414978

To expand and to abandon : real options under asset variance risk premium

Alibeiki, Hedayat; Lotfaliei, Babak - In: European journal of operational research : EJOR 300 (2022) 2, pp. 771-787

Persistent link: https://www.econbiz.de/10013207304

Assessment of investment decision in the dry bulk shipping market based on real options thinking and the shipping cycle perspective

Yin, Jingbo; Wu, Yijie; Lu, Linjun - In: Maritime policy & management 46 (2019) 3, pp. 330-343

Persistent link: https://www.econbiz.de/10012209488

REAL OPTIONS METHODOLOGY IN PUBLIC-PRIVATE PARTNERSHIP PROJECTS VALUATION

Rakic, Biljana; Radenovic, Tamara - In: Economic Annals 59 (2014) 200, pp. 91-91

that the project value with the American abandonment option is greater than with the European abandonment option, hence …

Persistent link: https://www.econbiz.de/10010938648

Expropriation risk, investment decisions and economic sectors

Ochoa, Diana Constanza Restrepo; Correia, Ricardo; … - Departamento de Economía de la Empresa, Universidad … - 2014

We build a Real Options model to assess the importance of private provisionand the impact of expropriation risk on investment timing, investmentvolumes, governmental costs and social welfare. We consider two types ofbusinesses (essential and non essential businesses) and two stages (operatingand...

Persistent link: https://www.econbiz.de/10010894449

Why are losses less persistent than profits? : curtailments vs. conservatism

Lawrence, Alastair; Sloan, Richard G.; Sun, Estelle - In: Management science : journal of the Institute for … 64 (2018) 2, pp. 673-694

Persistent link: https://www.econbiz.de/10011823113

The Trade-off Theory Revisited: On the Effect of Operating Leverage

Glover, Kristoffer; Hambusch, Gerhard - Finance Discipline Group, Business School - 2013

This paper investigates the effect of operating leverage, and the subsequent abandonment option available to managers … firm's value optimisation. This introduces a degree of operating leverage and a non-zero value to the implicit abandonment … option of the firm’s manager. Solving for the firm's optimal timing and financing decisions we are able to derive the …

Persistent link: https://www.econbiz.de/10010883498

Innovation and the Financial Guillotine

Nanda, Ramana; Rhodes-Kropf, Matthew - Harvard Business School, Harvard University - 2012

We examine how investors' tolerance for failure impacts the types of projects they are willing to fund. We show that actions that reduce short term accountability and thus encourage agents to experiment more simultaneously reduce the level of experimentation financial backers are willing to...

Persistent link: https://www.econbiz.de/10010618065

Early abandonment of a motorway concession contract : value of the abandonment option and probability of abandonment under the real options framework

Galera, Antonio L.; Sánchez Solino, Antonio; Galinda … - In: International journal of transport economics : IJTE 43 (2016) 4, pp. 475-491

Persistent link: https://www.econbiz.de/10011661804