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The Study Of High-tech Enterprise IPO Pricing On The Basis Of Real Option Theory

Posted on:2005-02-02Degree:MasterType:Thesis
Country:ChinaCandidate:Y Q LiFull Text:PDF
GTID:2156360152468635Subject:Business management
Abstract/Summary:PDF Full Text Request
With the gradual standard on second board, more and more high-tech corporations finance through the capital market, But IPO's price of stock market is low generally at present, breaking away from the real value of the company. The paper attempt to combining IPO pricing characteristics of high-tech enterprise, prices the high-tech enterprise IPO by using real option theory, we hope to set up IPO pricing model to reflect the real values of high-tech company.Because high-tech enterprises has the characteristics of high investment and high risk, traditional IPO pricing methods have a great deal of defects among their pricing, This text has carried on deep analysis to this. The Comparable Approach requires having the ripe constant company, and most high-tech corporations belong to new trade, It is very difficult to find the similar constant company; Discounted cash flow needs to predict the income accurately, and risky characteristic of high-tech enterprise determines that it is very difficult to predict income in future; The Asset-based Approach is also very difficult to be used because short established time of most high-tech enterprises, the accounting data of history are scarce.Real option theory arouses the attention of people more and more in our country, its characteristics of flexibility, phased, uncertainty make it use in the fields such as R&D and project investment. The patent and investment project of the array possess the characteristics of option, we can carry on valuation to them by the methods of real option, so it possess feasibility on pricing IPO in high-tech enterprise on the basis of real option theory. This paper explains how make the two combine and procedures and difficulties by using real option theory to price.At last, this paper combines the theoretical research ahead, sets up the pricing model of high-tech enterprise's IPO pricing by using real option method, analyzes the assumption and parameter estimate, and examine the result of model through concrete instances. This model has broken the frame of the traditional pricing theory, annotated IPO pricing method with the brand-new angle, although it has some place to be perfected, we hope it supplies a direction of research and a kind of new pricing angle, and has certain guide and reference to the administrators and the investors of the high-tech corporations.
Keywords/Search Tags:Real Option, Initial Public Offering, high-tech enterprise, Coordination Coefficient
PDF Full Text Request
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