Real options implicit in the strategic development of a food distribution company

Authors

  • Mauricio Gutiérrez Urzúa Universidad del Bío-Bío
  • Jorge González Sepúlveda Universidad de Concepción

DOI:

https://doi.org/10.22320/hem.v17i1.3280

Keywords:

valuation, firm expansion, deferring, real, options

Abstract

The present article focuses in valuate the option of deferring the firm´s expansion through the construction of branches on cities of the south of Chile. It was possible to infer that the real option of postponing an expansion project generates an additional value, due to the benefit of opening before schedule, considering the risk and variability of the sales. In other words, it minimized the exposure to risk by postponing the investing, maximizing the earnings under favourable circumstances.

Author Biographies

Mauricio Gutiérrez Urzúa, Universidad del Bío-Bío

Economy and Finance Department, University of Bio Bio, Chile, mauroguti40@yahoo.es, fono 56-41-3111272

Jorge González Sepúlveda, Universidad de Concepción

Faculty of Engineering University of Concepción Chile fono 56-41-3111272

References

Copeland, T. E., Weston, J. F., & Shastri, K. (1983). Financial theory and corporate policy (Vol. 3). Massachusetts: Addison-Wesley.

Copeland, T. E., Antikarov, V., & Copeland, T. E. (2001). Real options: a practitioner's guide (p. 4). New York: Texere.

Mascareñas , J. M. M., Fernández, P. L., Lubián, F. J. L., & de Luna Butz, W. (2003). Opciones reales y valoración de activos: cómo medir la flexibilidad operativa en la empresa.

Sapag N. S. (2007). Proyectos de inversión: formulación y evaluación. Pearson Educación.

Yuan, F. C. (2009). Simulation–optimization mechanism for expansion strategy using real option theory. Expert Systems with.

Published

2018-05-31

Issue

Section

Artículos de Investigación