IDEAS home Printed from https://ideas.repec.org/a/bla/jacrfn/v19y2007i4p107-114.html
   My bibliography  Save this article

Euro Membership as a Real Option Trigger: An Empirical Study of EU15 Manufacturing Firms

Author

Listed:
  • Tom Aabo
  • Christos Pantzalis

Abstract

This article summarizes the authors' study of manufacturing firms in the 15 countries that made up the EU prior to its 2004 expansion. The study's main finding is that the introduction of the Euro has made companies based in one of the 12 countries that opted to adopt the Euro more inclined than firms based in one of the three non‐adopters (the U.K., Sweden, and Denmark) to exercise various forms of real options such as establishing alliances or partnerships, entering new markets, switching suppliers, or otherwise expanding within the Euro‐area. The study also shows that smaller, more profitable but financially constrained companies are particularly likely to exercise such real options triggered by the introduction of the Euro.

Suggested Citation

  • Tom Aabo & Christos Pantzalis, 2007. "Euro Membership as a Real Option Trigger: An Empirical Study of EU15 Manufacturing Firms," Journal of Applied Corporate Finance, Morgan Stanley, vol. 19(4), pages 107-114, September.
    • Handle: RePEc:bla:jacrfn:v:19:y:2007:i:4:p:107-114
    DOI: 10.1111/j.1745-6622.2007.00164.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1745-6622.2007.00164.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1745-6622.2007.00164.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jacrfn:v:19:y:2007:i:4:p:107-114. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=1078-1196 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.