search query: @author Howell, S. D. / total: 2
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| Author: | Howell, S. D. Jägle, A. J. |
| Title: | Laboratory evidence on how managers intuitively value real growth options |
| Journal: | Journal of Business Finance and Accounting
1997 : SEP, VOL. 24:7-8, p. 915-935 |
| Index terms: | GROWTH OPTIONS MANAGERS MICROECONOMICS |
| Language: | eng |
| Abstract: | Various capital budgeting theorists have assumed that the intuition of managers is consistent with real growth option theory. This paper set out to collect systematic laboratory evidence to compare with the anecdotal real world evidence. For a particular form of real option theory, namely growth options modelled as European, non dividend paying options, and for a particular set of hypothetical parameters and textual case narratives, it is found that the skilled managerial decision makers agree only approximately with real option theory. The paper suggests that there is only a weak and approximate correspondence between management's intuition and real growth option theory. |
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