Real Options and Investment Incentives / Edition 1

by Gunther Friedl

Overview

This work analyzes the problem of delegated decision-making within firms when investment projects are characterized by the possibility to make subsequent decisions after the initial investment decision has been made. By analyzing this question, the monograph combines and unifies two important lines of literature: on the one hand the literature on controlling investment decisions, on the other hand the investment valuation literature.

Product Details

ISBN-13:	9783540482666
Publisher:	Springer Berlin Heidelberg
Publication date:	02/02/2007
Edition description:	2007
Pages:	119
Product dimensions:	6.10(w) x 9.25(h) x 0.01(d)

Table of Contents

Institutional and Methodological Background for the Analysis of Investment Incentives.- Capital Rationing as an Incentive Instrument for Growth Options.- Residual Income as a Performance Measure for Switching Options.- Residual Income as a Performance Measure in the Presence of Waiting Options.- Implications and Conclusions.