When can pessimism add value? How real option disinvestment flexibility augments project NPV

Accounting and Finance

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Research output: Working paper

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When can pessimism add value? How real option disinvestment flexibility augments project NPV. / Keswani, A; Shackleton, M B.
Lancaster University: The Department of Accounting and Finance, 2002. (Accounting and Finance Working Paper Series).

Research output: Working paper

Harvard

Keswani, A & Shackleton, MB 2002 'When can pessimism add value? How real option disinvestment flexibility augments project NPV' Accounting and Finance Working Paper Series, The Department of Accounting and Finance, Lancaster University.

APA

Keswani, A., & Shackleton, M. B. (2002). When can pessimism add value? How real option disinvestment flexibility augments project NPV. (Accounting and Finance Working Paper Series). The Department of Accounting and Finance.

Vancouver

Keswani A, Shackleton MB. When can pessimism add value? How real option disinvestment flexibility augments project NPV. Lancaster University: The Department of Accounting and Finance. 2002. (Accounting and Finance Working Paper Series).

Author

Keswani, A ; Shackleton, M B. / When can pessimism add value? How real option disinvestment flexibility augments project NPV. Lancaster University : The Department of Accounting and Finance, 2002. (Accounting and Finance Working Paper Series).

Bibtex

@techreport{117773b7a5ea47a987d63f3d073a0429,

title = "When can pessimism add value? How real option disinvestment flexibility augments project NPV",

abstract = "In this article by drawing together existing option pricing models we demonstrate how different degrees of managerial flexability can affect the value of a project. In particular we also include new option pricing results that allow us to properly take into account a firms exit option. Our paper illustrates that these disinvestment options can be valuable suggesting that managerial pessimism (i.e. consideration of outcomes if the project does not perform) can add value.",

author = "A Keswani and Shackleton, {M B}",

year = "2002",

language = "English",

series = "Accounting and Finance Working Paper Series",

publisher = "The Department of Accounting and Finance",

type = "WorkingPaper",

institution = "The Department of Accounting and Finance",

}

RIS

TY - UNPB

T1 - When can pessimism add value? How real option disinvestment flexibility augments project NPV

AU - Keswani, A

AU - Shackleton, M B

PY - 2002

Y1 - 2002

N2 - In this article by drawing together existing option pricing models we demonstrate how different degrees of managerial flexability can affect the value of a project. In particular we also include new option pricing results that allow us to properly take into account a firms exit option. Our paper illustrates that these disinvestment options can be valuable suggesting that managerial pessimism (i.e. consideration of outcomes if the project does not perform) can add value.

AB - In this article by drawing together existing option pricing models we demonstrate how different degrees of managerial flexability can affect the value of a project. In particular we also include new option pricing results that allow us to properly take into account a firms exit option. Our paper illustrates that these disinvestment options can be valuable suggesting that managerial pessimism (i.e. consideration of outcomes if the project does not perform) can add value.

M3 - Working paper

T3 - Accounting and Finance Working Paper Series

BT - When can pessimism add value? How real option disinvestment flexibility augments project NPV

PB - The Department of Accounting and Finance

CY - Lancaster University

ER -

Research

Electronic data