IDEAS home Printed from https://ideas.repec.org/a/eee/eurman/v24yi2-3p117-127.html
   My bibliography  Save this article

Valuing Announcement Options

Author

Listed:
  • Dempster, Anna

Abstract

This paper introduces a theory of corporate announcements based on the new concept of an announcement option which has not been previously recognized in the literature as an independently valuable real option de-coupled from strategy implementation. While contributing to the strategy and real options literature, the paper also bridges the corporate disclosure literature and theories of signalling. By conceptualising corporate announcements as real options, the paper provides a framework and focuses on a methodology for precisely valuing announcements. To illustrate the use and valuation of announcement options, the historical case of Prudential plc's announcements concerning its internet venture Egg is analysed.

Suggested Citation

  • Dempster, Anna, 0. "Valuing Announcement Options," European Management Journal, Elsevier, vol. 24(2-3), pages 117-127, April.
  • Handle: RePEc:eee:eurman:v:24:y::i:2-3:p:117-127
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0263237306000144
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Waters, James, 2015. "Optimal design and consequences of financial disclosure regulation: a real options approach," MPRA Paper 63369, University Library of Munich, Germany.
    2. Delaney, L. & Thijssen, J., 2011. "Valuing voluntary disclosure using a real options approach," Working Papers 11/06, Department of Economics, City University London.
    3. Delaney, Laura & Thijssen, Jacco J.J., 2015. "The impact of voluntary disclosure on a firm’s investment policy," European Journal of Operational Research, Elsevier, vol. 242(1), pages 232-242.
    4. Jesper Lindgaard Christensen, 2008. "The IPR System, Venture Capital and Capital Markets – Contributions and Distortions of Small Firm Innovation?," DRUID Working Papers 08-03, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    5. Laura Delaney & Jacco J.J. Thijssen, "undated". "Valuing Voluntary Disclosure using a Real Options Approach," Discussion Papers 11/13, Department of Economics, University of York.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eurman:v:24:y::i:2-3:p:117-127. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/115/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.