search query: @author Crasselt, N. / total: 3
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| Author: | Crasselt, N. |
| Title: | Accounting-based investment incentives and real options |
| Journal: | Zeitschrift für Betriebswirtschaft
2004 : VOL. 74:3, Ergänzungsheft, p. 55-76 |
| Index terms: | investment incentives decision making models |
| Language: | eng |
| Abstract: | This paper analyzes incentive (hereafter as: inc./incs.) schemes in a real options (here as: R-O.) setting, involving decisions about both the creation of new and the exercise of already existing R-O. It is shown that the prior results carry over for some special cases. However, in more general settings the results do not persist and over- and underinvestment problems cannot be avoided. Hence, a contingent depreciation schedule is introduced. Although this rule goes a long way towards a goal-congruent solution, it cannot fully eliminate all incs. to deviate from first-best decisions. |
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