Andres-Alonso, Pablo de; Azofra-Palenzuela, Valentin; … - In: Applied Economics 37 (2005) 14, pp. 1673-1691
This paper aims to examine how investors' expectations about the value of a firm's real options are reflected in the price of its stocks. If the real-option approach is correct, then the efficient-market hypothesis predicts that stock prices will reflect the available information relative to the...