کد مقاله کد نشریه سال انتشار مقاله انگلیسی نسخه تمام متن
7355346 1477510 2017 9 صفحه PDF دانلود رایگان
عنوان انگلیسی مقاله ISI
On the trade-off between the leverage effect and real options thinking: A simulation-based model on metal mining investment
موضوعات مرتبط
مهندسی و علوم پایه سایر رشته های مهندسی مهندسی صنعتی و تولید
پیش نمایش صفحه اول مقاله
On the trade-off between the leverage effect and real options thinking: A simulation-based model on metal mining investment
چکیده انگلیسی
This paper studies the effects of financing conditions to managerial flexibility and project value and focuses on the point of view of the equity holder of a mining company. Simulation based analysis is performed with a dynamic system model of a metal mine investment. The leverage effect of the equity holder's discount rate change as a function of the debt/equity ratio is separately modelled. Our empirical results show that the choice of a financing structure is important for the value maximization for the equity holder, since different debt/equity ratios differently condition the management's ability to make operational decisions, such as temporary shut downs, which could raise the value of the mining project. The trade-off between the leverage effect (decreasing need for equity) and real option flexibility (increasing need for working capital) will be scrutinized both theoretically and by using simulation-based analysis for numerical results.
ناشر
Database: Elsevier - ScienceDirect (ساینس دایرکت)
Journal: International Journal of Production Economics - Volume 194, December 2017, Pages 43-51
نویسندگان
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