The Decision-Making Theory of Foreign Direct Investment Based on Real Options

摘要：

According to the real options theory, the opportunities in the decision-making of FDI would be regarded as the real options belonging to the multinational enterprise(MNEs). Facing the market and technology uncertainty, there are options to defer investment and growth options contained in the opportunity of FDI. When the value of options to defer investment increases, MNEs have motivation to delay the investment; and the value of growth options increases, MNEs have motivation to implement the initial investment. This paper develops a two-stage model of FDI based on real options theory, discusses the effects of real options value to the FDI decision-making. When making investment decisions, both kinds of real options should be consolidated balanced, and thus the timing of FDI be measured.

作者: Yongfeng Cao

作者单位: Business school Huzhou Teachers college Huzhou, China

会议类型: 国际会议

会议名称: International Conference on Management and Service Science(2011年第五届管理与服务科学国际会议 MASS 2011)

会议地点: 武汉

会议语种:英文

页码: 1-4

在线出版日期: 2011-08-12（万方平台首次上网日期，不代表论文的发表时间）