Real options, firm valuation, and corporate information environment
School of Business, Macau University of Science and Technology, Macau, China
Chongqing Finance and Economics College, Chongqing, China
School of Business, Macau University of Science and Technology, Macau, China
ABSTRACT: This paper uses the real options model to evaluate the firm value of Chinese A-share listed firms. We find that the value based on the real options model is closed to the intrinsic value of the enterprise, and can explain the variance of stock returns. We further analyze the influence of the corporate information environment on the correlation of real option value, and find that less agency conflict is beneficial ...
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