Corporate finance and option theory: an extension model of rao and stevens (2007)
This thesis focuses on the field of market valuation of relatively large firms and it refers markets with “normal” behavior, where classical assumptions apply, such as rationality and dynamical stability, in an attempt to investigate the firm's value creation so as to reveal the contribution of...
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| Tipo de recurso: | tesis doctoral |
| Estado: | Versión publicada |
| Fecha de publicación: | 2010 |
| País: | España |
| Institución: | Universitat Rovira i virgili (URV) |
| Repositorio: | Repositori Institucional de la Universitat Rovira i Virgili |
| OAI Identifier: | oai:urv.cat:TDX:1156 |
| Acceso en línea: | https://hdl.handle.net/20.500.11797/TDX1156 http://hdl.handle.net/10803/101519 |
| Access Level: | acceso abierto |
| Palabra clave: | 67 - Indústries, comerços i oficis diversos 336 - Finances. Banca. Moneda. Borsa |
| Sumario: | This thesis focuses on the field of market valuation of relatively large firms and it refers markets with “normal” behavior, where classical assumptions apply, such as rationality and dynamical stability, in an attempt to investigate the firm's value creation so as to reveal the contribution of all possible stakeholders that might be involved in the formation of the market value of a firm. The literature review related to valuation models, especially the DCF model, has shown that the conceptual frame of Modigliani and Miller, to determine the market value of a firm as it is understood today, is too restricted because only three types of stakeholders (shareholders, debtholders and government) are considered. This work contributes to build an extending valuation model which incorporates some other stakeholders (different from shareholders, debtholders and government), such as employees and clients so as to reflect their influence on the firm's market value. Based upon the work of Rao and Stevens (2007) which reflects the role of the three types of stakeholders with a special emphasis on the role of government, real options theory is applied here to quantify the value created through a major degree of loyalty and capture policies for both employees and clients. One fundamental option is proposed when building the model and it is related to the employees' and clients' portfolio of a firm, which has options to improve returns by driving up the motivations of employees, the fidelity of clients, the capture of talents, the information campaigns to clients and/or investors. Through applying real options theory, this thesis finds an appropriate way for treating the uncertainty and integrating the risks associated with it in valuation models, along with considering the flexibilit |
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