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Evaluating the Impact of Intelligent Data Processing for Corporate Finance with the Use of Real Options Analysis

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  • Stanimir Ivanov Kabaivanov

    (Department of Finance and Accounting, Plovdiv University Paisii Hilendarski, 24 Tzar Assen Str., 4000 Plovdiv, Bulgaria)

  • Veneta Metodieva Markovska

    (Department of Management, Plovdiv University Paisii Hilendarski, 24 Tzar Assen Str., 4000 Plovdiv, Bulgaria)

Abstract

Technological innovation is changing virtually every aspect of business practices and operational procedures. The introduction of large language models and various types of intelligent processing, commonly referred to as artificial intelligence, presents significant change to cope with. In this paper, we suggest an estimation method, based on real options analysis (ROA), that improves the assessment and valuation of intelligent data processing’s impact on organizations. The presented approach can reflect direct and indirect effects from introducing artificial intelligence methods and is therefore better suited than traditional financial metrics for the assessment of contemporary intelligent tools and solutions. Using Monte Carlo simulation and American-style real options, we have estimated two sample use cases to compare the ROA results against other common valuation methods. Numerical experiments indicate that the suggested approach is capable of capturing both the direct and indirect impact of new technologies, which improves relevant financial and management decisions.

Suggested Citation

  • Stanimir Ivanov Kabaivanov & Veneta Metodieva Markovska, 2026. "Evaluating the Impact of Intelligent Data Processing for Corporate Finance with the Use of Real Options Analysis," JRFM, MDPI, vol. 19(4), pages 1-18, April.
    • Handle: RePEc:gam:jjrfmx:v:19:y:2026:i:4:p:292-:d:1923362
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