| Summary: | 碩士 === 國立彰化師範大學 === 商業教育學系 === 93 === Mobile Telecommunication has been the most important emerging industry all over the world in recent years. Because it is under high risk and uncertainty, managers have to make applicable investment decisions to improve the growth opportunity while facing different conditions. Moreover, Telecommunication Industry is exposed to competitive investment circumstances, so that decision-makers have to take account of the influences of other competitors when drawing up plans in order to promote their competitive ability. Therefore, multiple flexible decisions and the exogenous competition factor ignored in past studies are both considered here. In this study, the Log-Transformed Binomial with exogenous jumps model of Trigeorgis (1996) is used to evaluate the values of investment opportunities of Taiwan’s six mobile telecommunication systems factories. Besides, the former results will be compared with standard NPV.
The findings are as follows. First, not only expanded NPV is greater than standard NPV, but the investment projection will be adopted when its computed expanded NPV is greater than zero. Empirical results also indicate that the management authority must think over the influences of the competitors to make the applicable investment decisions since the exogenous competition factor would make expanded NPV negative. Second, when two options are mixed, the combined-option value is greater than an individual option, for the same reason, the value of three-mixed-options is greater than that of two-mixed-options. Hence, if the four options are all taken into consideration at the same time, the greatest value could be created. Finally, the
interaction of real options do exist, and option values are
non-additive, which consists with the previous results of Trigeorgis (1993).
|
|---|
