Real Option Theory And Research On The Application Of It In Enterprise Investment Decision

With the intensity of market competition and the fast development of new technology, Enterprise management environment constantly develops and varies, which demands enterprise to treat the risk and uncertainty timely and dynamically, chooses investment direction correctly, controls investment scale rationally, adjusts investment style flexibility, changes investment decision constantly. The valuation method of traditional enterprise investment decision is mostly net present value method, which adapts to valuate the short run and certainty investment project. However, it can't make the good use of flexibility strategy directs people to deal with the uncertainty problem of investment, exists great defect and shortage.Generally, the investment effect of our country's enterprise is below. Besides the factor of institutions, the backward of the investment mind and decision method is another important factor. It is a key to solve the above paradox, which introduces new management mind and technology. The article introduces the mind of real option to modify the traditional project investment valuation method, to supply a new tool for the analysis of project investment decision. The article firstly introduces the research background, purpose, meaning, and summarizes related documents. And then, the article discusses real option theory, next, discusses enterprise investment decision from real option, and points the defect and shortage of the traditional investment decision method. Therefore, we introduce real option method to valuate it. Lastly, the article applies real option theory to valuate enterprise investment decision. Includes: (1) The application of B-S option pricing model in enterprise strategy investment decision. It can properly valuate those strategic factor of the difficulty quantify under traditional decision method, and can effectively improve the science and correctness of decision. (2) The application of binomial tree model in enterprise R&D investment decision. The method is based on the binomial tree no-risk arbitrage pricing method and decision tree method, cooperate the decision framework of R&D project with the strategy of the whole corporations, makes the decision process more proper the mental habit of decision-maker. (3) The application of real option method in new technology investment. Based on analyzing enough the character of new technology investment and the uncertainty of investment, use real option theory and method to creating new technology investment decision model, and analyses the affection of suddenly accident to the valuation of new technology investment, suppliesa more objective investment valuation method for new technology investment. Introduces real option method to valuate enterprise investment decision, overcomes the defect and shortage of traditional investment valuation method, which makes enterprise investment decision valuation method more science and effect. Meanwhile, the article points the shortage of the application of real option method, and analyses the embarrassment of realization of real option pricing of our country's enterprises.