Dissertation > Excellent graduate degree dissertation topics show

Real Options Theory Research and Application in the Company Decision

Author: WenXingPu
Tutor: ZengXiangJin
School: Wuhan University of Technology
Course: Applied Mathematics
Keywords: Real options option game theory Game Theory Cournot oligopoly model
CLC: F275
Type: Master's thesis
Year: 2010
Downloads: 118
Quote: 0
Read: Download Dissertation

Abstract


Venture investment comes into China from the mid-80s. And it accelerates development since 1990s. Evaluating is required to venture investment. Most investors are still using the traditional method to do it. But there are fatal flaw in it. Real options theory is the development and improvement of traditional method. It brings the financial option pricing model into real option pricing, which is a good evaluation of the operating flexibility value of a project. However, in the traditional method of real options there was an investor in the project alone. In the real market conditions, the absolute monopoly is being broken. Often there are multiple investors have the project investment rights. So the game theory was introduced to the real option approach. But all the theoretical discourse now, full of complex mathematical formulas, is not practical.The article improves the imperfection method. It has applied the theory of options of binary tree method. The types of real options in the main consideration for expansion option, shrinkage option and abandon option. Another innovation of this paper is combining with a game theory model that in the expansion option and shrinkage option part, considering the competition among investors, making this part more reasonable. This article will be based on game theory, which applied to real options specific modeling process to build a more complete model of real options.Firstly, the article describes the background, significance, the main content of this study and research ideas of the theory. Secondly, the article introduces the two basic theory:game theory and real option theory; And it introduces general framework of the option game and analyze the status of research at home and abroad. Thirdly, mainly discusses how to use the real option to evaluate the worth of company with the Cournot game and relevant methods. Finally, the article mainly used the method to evaluate the project options value, and in the end are summarized and prospects.Research result shows that the real option method is more positive and optimistic than the traditional method. It fully estimated the value of the investment project. The reasonable consideration of uncertainty provides us a feasible method of new ideas. The introduction of game theory makes this method more scientific and reasonable. The new model has important significance and application value to venture investment decision-making.

Related Dissertations

  1. The Research of Credit Management Countermeasure to Network Group Buying in China,F203
  2. Research on Incentive System of the Circular Agriculture Development,F323.22
  3. The Study of the Collaboration Mechanism of Enterprise Groups Based on the Manufacturing Grid,F272
  4. The Analysis of the Government Actions in the Construction of the Industry Technology Innovation Alliance,F224.32
  5. Research of Shipbuilding Industry Fixed Assets Investment Decision-Making Based on Real Options Theory,F830.9;F224
  6. An Analysis of Principal-agent Model in the Incentive Mechanism of Insurance Agent,F224
  7. Research on Strategic Choice of Corporate Emissions Based on Emissions Trading System,X321
  8. The application of real option theory to the pricing of steel mergers and acquisitions,F426.31
  9. Based on Real Options Real Estate Development Decision Delayed,F293.3;F832.5
  10. Study on Trilateral Exchange Rate Fluctuation’s Influence on Sino-Ameirica Trade and Coping Strategy,F752.7;F832.6
  11. Research on Information Sharing of the Supply Chain with a Dominant Retailer,F721;F224
  12. Research on the Customer Equity Measurement for Telecom Enterprises Based on Real Options Analysis,F626;F224
  13. Valuation of New and Hi-Tech Enterprises Based on Real Options,F276.44
  14. The Characteristics of the New Third Board Enterprises and Equity Evaluation,F272
  15. Research on Remanufacturers’ Competitive Strategies in Closed-loop Supply Chain,F274
  16. Transfer characteristics of study based on the knowledge of the core enterprise supply chain,F224
  17. The Research of MBO Pricing on Listed Companies,F271
  18. Value Evaluation of Target Enterprise Based on EVA and Real Options Method,F224
  19. The Problems and Countermeasures for Straw-fired Power Project in Hebei Province,F426.61
  20. Economic Analysis of the Right to Safe,F224.32

CLC: > Economic > Economic planning and management > Enterprise economy > Corporate Financial Management
© 2012 www.DissertationTopic.Net  Mobile