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Evaluation of Corporative Value in Case of Insecurity: Determinants and Models

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  • Georgi Lachov

Abstract

Examined are the determinants and models for evaluation of corporative value in case of insecurity. Supported is the opinion that determinants of corporative value are the expected returns of the possessed assets and of future investment opportunities which are evaluated with the relevant traditional models of discounted money flows and with the models of real options. Endorsed is the leading role of management flexibility which allows management in acquiring new information the usage of potential to increase the returns and to restrain the risks of decrease of corporative value. Analyzed are the real options as instruments for revealing of the wide corporative value in case of insecurity.

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  • Georgi Lachov, 2008. "Evaluation of Corporative Value in Case of Insecurity: Determinants and Models," Economic Thought journal, Bulgarian Academy of Sciences - Economic Research Institute, issue 2, pages 89-106.
    • Handle: RePEc:bas:econth:y:2008:i:2:p:89-106
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    References listed on IDEAS

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    1. Pablo De Andrés‐Alonso & Valentín Azofra‐Palenzuela & Gabriel De La Fuente‐Herrero, 2006. "The Real Options Component of Firm Market Value: The Case of the Technological Corporation," Journal of Business Finance & Accounting, Wiley Blackwell, vol. 33(1‐2), pages 203-219, January.
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    More about this item

    JEL classification:

    • G31 - Financial Economics - - Corporate Finance and Governance - - - Capital Budgeting; Fixed Investment and Inventory Studies
    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill

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