Studies on the Decision Making of Optimal Investment for the Financial Institutions with Real Options Approach

• Main Authors: Yu-Hung Chen, 陳裕鈜
• Other Authors: Tyrone T. Lin
• Format: Others
• Published: 2016
• Online Access: http://ndltd.ncl.edu.tw/handle/15622452731493917704

碩士 === 國立東華大學 === 國際企業學系 === 104 === This study will evaluate the projected real options value model applied to financial institutions. In order to assess the optimal threshold for individual strategies, the aim is to construct a dynamic decision-making model on mergers and acquisitions and capital increase in terms of investment behavior. That is comparing the expected optimum project value between the traditional stage and the transition into the post-operational stage after the strategies have been prepared. This evaluation process involves a potential strategic value and the real operation value of each stage, and provides a mathematical dynamic model to managers and policy makers for decision-making or cognition. This model uses the Real Options Approach of financial economics. It is to create formulas to calculate the enterprise project value under a dynamic environment of optimum switching timing, according to the enterprise revenue obeying Geometric Brownian Motion and by using value matching and smooth pasting conditions. Finally, this study used models and sensitivity analysis to identify important indicators of decision-making and the management flexibility of potential strategic value to analyze and evaluate the feasibility of the project.