Real Option Analysis on Interactions of Investment and Financing Decisions
This paper establishes models of valuemaximizing decisions of corporate investment and financing with real options. It finds that under the influences of debt tax benefits and bankruptcy costs, there exist interactions between corporate investment and financing, and also it expounds on the mechanism for their interactions. The paper holds that the only way for decision-makers to minimize the firm risk and maximize the firm value is to recognize the interactions of investment and financing, and to jointly determine these two. It offers a framework for the collaborative decision-making of investment and financing, helps to improve efficiency of investment and financing, better the firms performance, and finally reaches the ultimate goal of sustainable development of economy in our country. This paper also offers a new perspective for risk management of the firm by emphasizing joint decisions of investment and financing.
investment decisions financing decisions interactions real option
Peng Cheng Wang Haiyuan Liu Yi
lnternational Business School, Sichuan International Studies University, Chongqing, China,400031
国际会议
The 1st International Conference on Sustainable Construction & Risk Management(首届可持续建设与风险管理国际会议)
重庆
英文
1469-1476
2010-06-12（万方平台首次上网日期，不代表论文的发表时间）