Real Option Valuation in Service Industries
Uncertainty is the greatest risk management faces, but it also provides enormous opportunities for value creation. Basing strategic decisions on theoretically rigorous analysis is therefore vital to long-term corporate success in an uncertain and changing marketplace. The real option approach is the...
| Main Author: | |
|---|---|
| Format: | eBook |
| Language: | German |
| Published: |
Wiesbaden
Deutscher Universitätsverlag
2000, 2000
|
| Edition: | 1st ed. 2000 |
| Series: | Gabler Edition Wissenschaft
|
| Subjects: | |
| Online Access: | |
| Collection: | Springer Book Archives -2004 - Collection details see MPG.ReNa |
| Summary: | Uncertainty is the greatest risk management faces, but it also provides enormous opportunities for value creation. Basing strategic decisions on theoretically rigorous analysis is therefore vital to long-term corporate success in an uncertain and changing marketplace. The real option approach is the tool to integrate the values of flexibility and uncertainty into capital budgeting. Jürgen Müller applies the real option approach to service industries, in this case to retail banking; he provides empirical support for the approach and simplifies the applicability of real option concepts in corporate practice. Based on a case study of the Polish retail banking market, the author develops and illustrates a simplified approach to real option valuation based on the binomial option pricing model |
|---|---|
| Physical Description: | XXV, 267 S. 5 Abb online resource |
| ISBN: | 9783322992994 |