Hu, Chengru; Jiang, Wei; Lee, Cheng-few - In: Review of Quantitative Finance and Accounting 41 (2013) 2, pp. 273-294
This paper examines whether investors recognize the value of managerial flexibilities, as proxied by real options, in their valuation of new product introductions. We define a firm’s real options portfolio as the difference between the firm’s market value and its assets in place. A firm’s...