Identifying Optimal Rearing Period of Hanwoo Steers Using Real Option Value

2019 ◽  
Vol 60 (3) ◽  
pp. 55-72
Author(s):  
Se-Hyuk Kim ◽  
Tae-Kyun Kim ◽  
Hyun Seok Kim
Keyword(s):  
Real Option ◽  
Option Value ◽  
Real Option Value

scholarly journals ENTRY-LEVEL ENTREPRENEURS AND THE CHOICE-OF-ENTITY CHALLENGE

2013 ◽  
Vol 10 (2) ◽  
Author(s):  
Emily Ann Satterthwaite
Keyword(s):  
Real Option ◽  
Lower Income ◽  
Option Value ◽  
Entry Level ◽  
Deliberation Process ◽  
New Business ◽  
Tax Savings ◽  
First Time ◽  
Real Option Value ◽  
Future Growth

For first-time, lower-income and credit-constrained entrepreneurs (“entry-level entrepreneurs”), the employment tax savings proffered by a longstanding tax shelter known as the “Sub-S Shelter” can be particularly salient. Such hypersalience is problematic from a policy perspective. It not only increases the costs and complexity of the entry-level entrepreneur’s deliberation process concerning the appropriate entity for her business, but it distorts her incentives to choose the entity that best supports her business’s future growth. I argue that because the hypersalience of the Sub-Shelter is likely to be more pronounced for entry-level entrepreneurs than for entrepreneurs with more experience or better access to capital, the burdens of the shelter are distributionally regressive. As an alternative to full-scale reforms that would eliminate the demand for the Sub-S Shelter but may be politically infeasible, I suggest that the shelter’s regressive hypersalience can be addressed by government measures to provide choice-of-entity information tailored to the needs and concerns of entry-level entrepreneurs. Such targeted information can mitigate the hypersalience of the Sub-S Shelter by underscoring the risks of relying on it, while highlighting the real option value of choosing a more flexible business entity such as an LLC. By nudging entry-level entrepreneurs towards neutrality in regard to their choice-of-entity decisions, this approach has the potential to improve both the efficiency and the equity of a key step in formalizing a new business. 

scholarly journals Real option value and random jumps: application of a simulation model

2009 ◽  
Vol 41 (23) ◽  
pp. 2977-2989 ◽  
Author(s):  
Susana Alonso-Bonis ◽  
Valentín Azofra-Palenzuela ◽  
Gabriel de la Fuente-Herrero
Keyword(s):  
Simulation Model ◽  
Real Option ◽  
Option Value ◽  
Random Jumps ◽  
Real Option Value

scholarly journals Reporting of Real Option Value Related to ESG: Including Complementary Systems for Disclosure Incentives

2018 ◽  
Vol 9 (4) ◽  
pp. 19 ◽  
Author(s):  
Nobuhito Ochi
Keyword(s):  
Financial Reporting ◽  
Information Disclosure ◽  
Real Option ◽  
Financial Information ◽  
Strategic Decision ◽  
Option Value ◽  
Corporate Value ◽  
Reporting Systems ◽  
Disclosure Incentives ◽  
Real Option Value

This paper aims to consider ways of granting disclosure incentives in order for the Signaling Theory to develop and encompass the Legitimacy Theory. First, the author discusses that ESG strategies for managing stakeholder externalities create real option value that leads to corporate value creation, both as business opportunities as well as appeals to a company’s legitimacy. At the same time as making real option thinking useful for strategic decision-making by management, it is necessary to structure non-financial information disclosure for convincing optionality related to controlling externalities from the viewpoint of investors.Second, at the stage where conditions are not met for companies able to autonomously undertake management with a view to externalities, the author discusses how supplementing incentives for issuing signals regarding differentiation from other companies in the same industry relating to controlling externalities is required in the disclosure of non-financial information in statutory reporting systems. On the other hand, since the materiality of financial reporting is centered on risks and opportunities for business, disclosure regulations are required separately for material social values. Events not originally related to corporate value can create incentive for the fulfillment of accountability of companies by the mediation of “negative intangibles” through reputation.

A FUZZY MULTI-CRITERIA DECISION ANALYSIS APPROACH FOR RETAIL LOCATION SELECTION

2013 ◽  
Vol 12 (04) ◽  
pp. 729-755 ◽  
Author(s):  
A. CAGRI TOLGA ◽  
FATIH TUYSUZ ◽  
CENGIZ KAHRAMAN
Keyword(s):  
Real Option ◽  
Evaluation Criteria ◽  
Analytic Network Process ◽  
Value Theory ◽  
Preference Ranking ◽  
Option Value ◽  
Location Selection ◽  
Real Options Valuation ◽  
Retail Location ◽  
Real Option Value

This paper proposes fuzzy multi-criteria decision-making approach integrated with fuzzy real option value theory. The applicability of the proposed method was shown on a real-world supermarket location selection problem. Based on the interviews with the experts, the evaluation criteria for retail location selection were identified. Then the network for fuzzy analytic network process (ANP) method was constructed. The fuzzy real option value for each alternative was calculated and used in the proposed approach as the representative of the financial dimension. Finally, the preference ranking of alternatives and the relative importance of the criteria were obtained. The significant contribution of the proposed approach is that it integrates the financial dimension (FROV) of the location problem methodologically with the multi-criteria characteristic (FANP) of the problem. Another importance of this study is the first usage of real options valuation in the area of location selection science.

scholarly journals Return predictability and the real option value of segments

2017 ◽  
Vol 23 (1) ◽  
pp. 167-199 ◽  
Author(s):  
Pingui Rao ◽  
Heng Yue ◽  
Xin Zhou
Keyword(s):  
Real Option ◽  
Return Predictability ◽  
Option Value ◽  
The Real ◽  
Real Option Value

scholarly journals Modeling the Ex Post Real Option Value in Metastatic Melanoma Using Real-World Data

2021 ◽  
Author(s):  
Woojung Lee ◽  
Meng Li ◽  
William B. Wong ◽  
Tu My To ◽  
Louis P. Garrison ◽  
...  
Keyword(s):  
Metastatic Melanoma ◽  
Real World ◽  
Real Option ◽  
Option Value ◽  
Real World Data ◽  
World Data ◽  
Ex Post ◽  
Real Option Value

Real option value over a housing market cycle

2013 ◽  
Vol 43 (6) ◽  
pp. 862-874 ◽  
Author(s):  
John M. Clapp ◽  
Piet Eichholtz ◽  
Thies Lindenthal
Keyword(s):  
Housing Market ◽  
Real Option ◽  
Option Value ◽  
Real Option Value

scholarly journals Stock Return Volatility, Firm Real Option Value, And Mergers And Acquisitions Premiums

2021 ◽  
Author(s):  
Uyen (Wendy) Nguyen
Keyword(s):  
Mergers And Acquisitions ◽  
Real Options ◽  
Stock Return ◽  
Real Option ◽  
Return Volatility ◽  
Option Value ◽  
Leverage Ratio ◽  
Stock Return Volatility ◽  
Options Value ◽  
Real Option Value

Considerable effort has been devoted to indicate the critical determinants of acquisition premiums. However, the determinants of mergers and acquisitions (M&A) premiums are not yet fully understood. This research paper empirically examines the effect of stock return volatility on mergers and acquisitions premiums through real options value of bidder and target firms. With a sample of 2,559 completed M&A deals in the US during 1986-2016, we find that bidder firms tend to pay more premiums for the targets that have more future real option value and higher risk. To be more specific, when targets have more real options measured as high Research and Development (R&D) to market value, high sales growth rate, and low leverage ratio, the relationship between target return volatility and acquisition premiums is stronger. This study contributes not only to the literature regarding the determinants of mergers and acquisitions premiums but also to the literature of real options value. Keywords: Mergers and acquisition premiums, acquisition premiums, stock return volatility, real options, growth options

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