EVALUATING R&D PROJECTS WITH HEDGING BEHAVIOR

被引：6

作者：

Luo, Lieh-Ming ^{[1
]}

Sheu, Her-Jiun

Hu, Yu-Pin ^{[2
]}

机构：

[1] Chaoyang Univ Technol, Coll Management, Chaoyang, Taiwan

[2] Natl Chi Nan Univ, Dept Int Business Studies, Puli, Nantou, Taiwan

来源：

RESEARCH-TECHNOLOGY MANAGEMENT | 2008年 / 51卷 / 06期

关键词：

real options; investment diversification; hedging effect;

D O I：

10.1080/08956308.2008.11657538

中图分类号：

F [经济];

学科分类号：

02 ;

摘要：

Many scholars suggest that, in general, successful R&D involves the systematic reduction of unique risk. Consequently, firms should adopt diversification or hedging behavior to reduce risk when investing in R&D projects. These projects can be evaluated through a real option method while considering the hedging behavior of firms. However, conventional real option methods may over- or under-state a project's value because they are apt to be influenced by the R&D firm's subjective expectations of the future market or technological prospect. The method proposed in this paper, which incorporates the hedging behavior of firms, would provide a more reasonable assessment of R&D projects, and would not be influenced by the arbitrary judgment of project evaluators. Additionally the results imply that the effective management of investment diversification can not old reduce the unique risk faced by firms, but also enhance the value of these R&D projects.

引用

页码：51 / 57

页数：7

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