This paper is the first to analyze importance of monitoring costs in real options analysis. Monitoring costs, in this context, are tied to the process of making key investment or management decisions. Monitoring costs differ from previously considered types of frictions, as they make it optimal...

One of the basic issues in the field of corporate governance is the choice of the most adequate national model in conditions of globalization of modern economy. The comparative analysis of national models of corporate governance allows defining the basic advantages (costs) which are necessary...

Sharpe-Lintner’s and Black’s CAPM versions as prevailing CAPM versions and their applicability in the Russian stock market are reviewed. Demonstration of applicability of the CAPM in the Russian stock market would imply that investors’ behavior is rational and the Russian...

The paper analyzes connection between market capitalization and fundamental value of equity of a company estimated on the base of residual earnings model. The authors use a version of this model, which is well-known in the Western literature, adapted to Russia. It is concluded that book value of...

Applicability of the Black’s two-factor CAPM version in the Russian stock market is tested. Selecting explicit factors influencing risky assets return allows not only to evaluate the degree of Russian market’s effectiveness but also to determine structure of non-observable market...

A real option is the opportunity to make flexible decisions in a continuously changing environment. Real options were used by people long before this concept was formally introduced to academics and the public. Meanwhile research analysis provided better understanding for existing options and...

The paper is aimed to contribute in understanding how the concept of real options changes traditional views to many key issues of management. Author proposes new classifications of real options, and provides applications of real options analysis to brand equity valuation and investment in...

This publication is devoted to the 90th anniversary of Leonid Vitalievich Kantorovich (1912-1986), a Nobel Prize winner in Economics. The paper is concerned with insufficiently explored issue of modern interpretation of his heritage in the theory and practice of management including strategic...

The paper deals with a modification of CAPM, which takes into account distinction between insiders as agents who actually determine the managerial decisions in the company, and outsiders, which are identifi ed as all other investors who do not have direct infl uence on managerial decisions. This...