Corporate investment under uncertainty and competition

A real options approach

G. Pawlina

Research output: ThesisDoctoral ThesisScientific

262 Downloads (Pure)

Abstract

Corporate investment opportunities can be represented as a set of (real) options to acquire productive assets. Identification of the optimal exercise strategies for these options plays a crucial role in improving the quality of capital budgeting decisions and, as a consequence, in maximizing shareholders¿ wealth. Structural changes in the economic environment, imperfect product market competition and agency conflicts across different groups of the firm¿s stakeholders make the standard option theory alone often insufficient for analyzing real investment decisions. This thesis combines option theory with non-cooperative game theory to establish some new results concerning the impact of policy uncertainty, product market interactions, and debt financing on the firm¿s optimal investment strategy.
Original languageEnglish
QualificationDoctor of Philosophy
Awarding Institution
  • Tilburg University
Supervisors/Advisors
  • Kort, Peter, Promotor
Award date20 Jun 2003
Place of PublicationTilburg
Publisher
Print ISBNs9056681184
Publication statusPublished - 2003

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Corporate investment
Real options
Investment under uncertainty
Option theory
Investment opportunities
Shareholder wealth
Structural change
Economic environment
Investment decision
Stakeholders
Optimal investment strategy
Product market
Assets
Product market competition
Non-cooperative game theory
Exercise
Market interaction
Policy uncertainty
Capital budgeting
Debt financing

Cite this

Pawlina, G. (2003). Corporate investment under uncertainty and competition: A real options approach. Tilburg: CentER, Center for Economic Research.
Pawlina, G.. / Corporate investment under uncertainty and competition : A real options approach. Tilburg : CentER, Center for Economic Research, 2003. 211 p.
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Pawlina, G 2003, 'Corporate investment under uncertainty and competition: A real options approach', Doctor of Philosophy, Tilburg University, Tilburg.

Corporate investment under uncertainty and competition : A real options approach. / Pawlina, G.

Tilburg : CentER, Center for Economic Research, 2003. 211 p.

Research output: ThesisDoctoral ThesisScientific

TY - THES

T1 - Corporate investment under uncertainty and competition

T2 - A real options approach

AU - Pawlina, G.

PY - 2003

Y1 - 2003

N2 - Corporate investment opportunities can be represented as a set of (real) options to acquire productive assets. Identification of the optimal exercise strategies for these options plays a crucial role in improving the quality of capital budgeting decisions and, as a consequence, in maximizing shareholders¿ wealth. Structural changes in the economic environment, imperfect product market competition and agency conflicts across different groups of the firm¿s stakeholders make the standard option theory alone often insufficient for analyzing real investment decisions. This thesis combines option theory with non-cooperative game theory to establish some new results concerning the impact of policy uncertainty, product market interactions, and debt financing on the firm¿s optimal investment strategy.

AB - Corporate investment opportunities can be represented as a set of (real) options to acquire productive assets. Identification of the optimal exercise strategies for these options plays a crucial role in improving the quality of capital budgeting decisions and, as a consequence, in maximizing shareholders¿ wealth. Structural changes in the economic environment, imperfect product market competition and agency conflicts across different groups of the firm¿s stakeholders make the standard option theory alone often insufficient for analyzing real investment decisions. This thesis combines option theory with non-cooperative game theory to establish some new results concerning the impact of policy uncertainty, product market interactions, and debt financing on the firm¿s optimal investment strategy.

M3 - Doctoral Thesis

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T3 - CentER Dissertation Series

PB - CentER, Center for Economic Research

CY - Tilburg

ER -

Pawlina G. Corporate investment under uncertainty and competition: A real options approach. Tilburg: CentER, Center for Economic Research, 2003. 211 p. (CentER Dissertation Series).