Not logged in.
Quick Search - Contribution
Contribution Details
Type | Journal Article |
Scope | Discipline-based scholarship |
Title | Analyzing firms' strategic investment decisions in a real options' framework |
Organization Unit | |
Authors |
|
Item Subtype | Original Work |
Refereed | Yes |
Status | Published in final form |
Language |
|
Journal Title | Journal of international financial markets, institutions & money |
Publisher | Elsevier |
Geographical Reach | international |
ISSN | 1042-4431 |
Volume | 13 |
Number | 5 |
Page Range | 451 - 479 |
Date | 2003 |
Abstract Text | Within the context of investment under uncertainty, the real options literature has led to models that capture primarily the time to wait flexibility of monopolistic corporations' investment decision. In this paper, we propose an approach which relies on barrier options to model production and/or sales delocalization flexibility for multinational enterprises making decisions under exchange rate uncertainty. We then extend the model by introducing game theoretic considerations to show how the information set and the competitive structure of the market may lead firms to act strategically and exercise their delocalization options preemptively at an endogenously fixed exchange rate barrier. |
Digital Object Identifier | 10.1016/S1042-4431(03)00018-0 |
Other Identification Number | merlin-id:13222 |
PDF File | Download from ZORA |
Export |
BibTeX
EP3 XML (ZORA) |